The Bank of Japan continues taking steps aimed at stimulating the national economy. The optimization of the existing programs doesn’t imply an increase in the money supply and is based on easing the conditions under which the central bank will be purchasing bonds.
At the same time, the Bank of Japan preserves the key interest rate at 0.1%. Together with an increase in bond purchases, this allows the bank to purchase bonds at negative rates.
Analysts say that such steps suggest the central bank’s willingness to resist market shocks.
In reality, the latest bond auction which took place on July 6th, failed to come up to expectations. Therefore, the Bank of Japan didn’t manage to buy the planned amount of bonds.
Forex.
According to , the Japanese Yen keeps strengthening against the US Dollar. USDJPY is currently forming wave А(С)/С of level Н3 inside a bearish move, represented by wave С of level Daily.
The closest levels of support are located at 78.38/36, 78.21/19 and 77.65 (the local high). The downtrend will be completed if the price overcomes the top of the MF sloping channel and consolidates above the MF pivot 79.10 (as shown below):
