USD/JPY: No response to BOJ’s status quo decision


  • USD/JPY has barely moved in response to BOJ’s decision to keep key policy tools unchanged. 
  • The downward revision of the growth and inflation forecasts could push the JPY lower during the day ahead. 

The Bank of Japan kept key policy tools unchanged, as expected, a few minutes before press time, leaving the USD/JPY largely unaffected near 112.00. 

The central bank rates kept the interest rates at -10bps while maintaining 10yr JGB yield target at 0.00%.

The BOJ vote was 8 to 1, leaving its pledge to buy JGBs unchanged so that its holdings increase at an annual pace of around 80 trillion yen.

The decision on maintaining its interest rate targets was made by a 7-2 vote with board members Goushi Kataoka and Yutaka Harada dissenting.

BOJ modified forward guidance on interest rates

The policy statement said the interest rates will remain very low for an extended period, at least through spring 2020. 

Inflation forecasts revised lower

The median core consumer price inflation (CPI) forecast for fiscal year 2020/21 has been revised lower to 1.4 percent from 1.5 percent. 

Further, real GDP forecast for fiscal year 2020/21 has been revised lower to 0.9 percent from 1 percent forecasted in January. 

The downward revision of the inflation and GDP forecasts could weigh over the Japanese yen during the day ahead. 

Technical Levels

    1. R3 113.22
    2. R2 112.81
    3. R1 112.5
  1. PP 112.09
    1. S1 111.78
    2. S2 111.37
    3. S3 111.06

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD hits new two-months highs after the ECB's boost

EUR/USD is trading above 1.1250, the highest since mid-March. The ECB added €600 billion in fresh stimulus, more than expected. The bank's move joins German stimulus and hopes for a recovery. 

EUR/USD News

GBP/USD returns to its lows as sentiment turns sour

GBP/USD trades around 1.2530, retreating from intraday highs as worse-than-expected US data took its toll on mood. The Bank of England is ramping up preparations for a no-trade-deal Brexit amid deadlocked talks, somehow limiting the intraday rally.

GBP/USD News

Cryptocurrencies: Crossroads in the war for dominance

Ethereum consolidates the 10% market share, looking forward to breaching the 10.25% level. The sentiment level shoots up again and clearly shows the two-way moment in the crypto market. Ripple is refusing to join the bullish party and remains anchored at the $0.20 level.

Read more

Gold recovers further from 1-month lows, moves back above $1715 level

Gold added to its intraday gains and refreshed daily tops, around the $1718 region during the early North American session.

Gold News

WTI: Recovery remains capped below $37 mark amid OPEC+ uncertainty

WTI (July futures on Nymex) is ranging in the familiar trading band near mid-36s so far this Thursday, having failed yet another upside attempts just shy of the 37 mark.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures