- USD/JPY trades near 103.53 versus 103.67 early Thursday.
- BOJ keeps key policy tools unchanged, revises 2020 growth forecasts lower.
Bank of Japan's (BOJ) status quo rate decision and downward revision of current economic assessment struggles to elicit a reaction from yen traders, leaving USD/JPY sidelined above 103.50.
The Japanese central bank has kept interest rates unchanged at -0.1% and retained the 10-year yield target at about 0%. However, the bank has revised the gross domestic product (GDP) target for the fiscal year 2020 to -5.6% from the previous projection of -5.5%.
Other key points
Japan's economy is likely to follow an improving trend.
BOJ sees the fiscal year 2021 GDP forecast at 3.9% vs. 3.6% previously.
The bank projects a core CPI of 0.5% in the fiscal year 2021 versus 0.4% previously.
The bank will purchase the necessary amount of Japanese bonds without setting an upper limit so that 10-year JGB yields will remain at around 0%.
The rate decision and policy statement offer no hawkish/dovish surprises. As such, USD/JPY is barely moving.
The pair will likely drop below Wednesday's low of 103.45 if the US treasury yields decline, putting pressure on the dollar. The 10-year yield is currently sidelined near 1.08%, having risen from 0.90% to 1.18% earlier this month.
Investors are expecting the new US President to deliver a bigger spending package in follow-through to the recent announcement of the $1.9 trillion stimulus package. As such, most investment banks foresee a drop in the US dollar.
|Today last price||103.53|
|Today Daily Change||0.01|
|Today Daily Change %||0.01|
|Today daily open||103.52|
|Previous Daily High||103.93|
|Previous Daily Low||103.45|
|Previous Weekly High||104.4|
|Previous Weekly Low||103.53|
|Previous Monthly High||104.75|
|Previous Monthly Low||102.88|
|Daily Fibonacci 38.2%||103.63|
|Daily Fibonacci 61.8%||103.75|
|Daily Pivot Point S1||103.33|
|Daily Pivot Point S2||103.15|
|Daily Pivot Point S3||102.85|
|Daily Pivot Point R1||103.82|
|Daily Pivot Point R2||104.12|
|Daily Pivot Point R3||104.31|
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