The analytic team of Societe Generale expects the Bank of Japan to keep easing its money-and-credit policy. The situation will clarify during today’s meeting.
Societe Generale’s report reads that the Japanese government increases its pressure on the BoJ, thus urging the central bank to eliminate the deflation, which is currently is seen as the biggest problem for the Japanese economy. The experts say that the bank may expand its bond purchases program up to ¥5 trillion today.
So far, the combat against the deflation of the Japanese Yen has been unsuccessful. In early March Japan’s export declined by 7.3% down to ¥3.64 trillion. The balance-of-trade deficit reached ¥191.24 against February’s ¥29.39 trillion surplus.
According to , the Japanese yen keep strengthening against the US Dollar. USDJPY is forming a downswing - wave А(С)/С inside А/В of Daily. The closest levels of support are 81.05, 80.95, 80.42, 80.09. The downtrend will be completed if the price breaks above the MF sloping channel and pivot 82.99.
