When is the BOJ rate decision and how could it affect USD/JPY?

Early on Thursday, the Bank of Japan (BOJ) will conclude its latest monetary policy meeting approximately at 2:00 GMT. The central bank is widely expected not to announce any changes in its key policy actions by holding short-term interest rate target at -0.1% and keep directing 10-year government bond yields toward zero.

With the absence of quarterly economic outlook, the event has fewer key details to watch except the BOJ Governor Haruhiko Kuroda speaks at the press conference somewhere near 04:30 GMT.

Ahead of the event, TD Securities said,

As Fed easing expectations intensify and central banks globally become more dovish, attention has shifted to BoJ policy. Admittedly the BoJ is more constrained than the Fed in terms of policy room, but their rhetoric has become more dovish. We don’t expect easing anytime soon but the BoJ is likely to sound dovish and could offer some enhanced forward guidance. Kuroda outlined four options in terms of more policy stimulus, with one being a further cut in the deposit rate. However, BoJ would need to outline how they plan to alleviate the pressure on bank profits from such a move.

How could it affect the USD/JPY?

Sluggish data support at home and recently dovish statements from the Governor Kuroda indicate reinforcement to the central bank’s easy monetary policy, which in turn could trigger the decline of the Japanese Yen (JPY). However, JPY’s safe-haven appeal could restrict the quote’s upside amid persistent fears of a global economic recession.

On the technical front, a sustained break of 107.80 holds the key to the quote’s extended downturn towards January 04 low near 107.47 whereas 106.62 and 105.50 could entertain sellers then after. Meanwhile, 108.20 and 21-day simple moving average (SMA) level of 108.67 restricts the pair’s near-term upside, a break of which can extend the recovery towards 108.80 and May 13 low near 109.00.

Key Notes

USD/JPY analysis: bears ready to push it further down

USD/JPY has dropped below the 108 handle as U.S. yields continue to fall

USD/JPY technical analysis: Not even the Fed can break this range

USD/JPY drops to test 108.00 as Fed sends US Dollar to the downside

About BoJ Rate Decision

BoJ Interest Rate Decision is announced by the Bank of Japan. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the JPY. Likewise, if the BoJ has a dovish view on the Japanese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD remains depressed but off daily lows

The EUR/USD pair is recovering from a daily low of 1.1216, although holding in negative territory for the day. US preliminary Michigan Consumer Sentiment Index improved by less-than-anticipated in July, coming in at 98.4 vs. the 98.5 expected.


GBP/USD trading marginally lower daily basis but above 1.2500

The Pound gave back some of its Thursday’s gain on dollar’s relief. The GBP/USD pair broke a daily descendant trend line coming from June’s high and holds above it, leaving little room for sellers to act.


USD/JPY: bears pausing, still in control

Japanese National Inflation steady at 0.7%YoY in June. US Michigan Consumer Sentiment Index expected at 98.5 in July. USD/JPY corrective advance falling short of signaling an interim bottom in place.


Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News

Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more