Despite the recent news that testify to the fact that the Japanese economy is slowing down, the Bank of Japan decided to leave its monetary policy unchanged. Still, the central bank hinted that there may be some changes in the near future.
In particular, the Bank of Japan is determined to continue its program aimed at crediting local banks for one more year. The program used to be due until March 2014 but the central bank saw the necessity to prolong the program in order to support the national banking system. Later today, the Bank of Japan is planning a press conference to clarify the situation.
Meanwhile, the central bank is set to make inflation reach the 2% target. The regulator is sure that the rate of inflation will grow in the near future.
At the same time, the Japanese Yen is weakening against the US Dollar as a response to the latest events, Masterforex-V Academy reports. This means USDJPY is showing a recovery against the recent decline. If the recovery continues, the price will probably encounter resistance at 102,93, 103,44 and the top of the MF sloping channel.
The MF pivot located at 101.98 and the bottom of the MF sloping channel are currently seen as the major levels of support for USDJPY.
