- 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|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.