Ivan Zhigalov
As Masaaki Shirakawa, BoJ Governor, told the reporters about the Bank of Japan’s intension to resume quantitative easing in the hope of curbing the deflation, the Japanese Yen weakened. According to Mr. Shirakawa, the BoJ’s major goal is to lower the inflation down to 1% and to ensure stable economic growth.
During the latest BoJ meeting, the central bank officials made no changes to the ¥10 bond purchase program and the 1% inflation target.
The currency strategists at Nomura Holdings say that traders keep monitoring the BoJ’s activities, which is reflected in the USDJPY exchange rate.
According to , the Japanese Yen continues strengthening against the US Dollar. USDJPY is probably forming wave 4 of a major downtrend. Alternatively, the AO readings are worth paying attention to. They probably tells us about the forming of a major downswing - wave A/B of a bigger-scale timeframe. The supposition will be confirmed if the price breaks the 80.08 level, which will cancel the wave-4 scenario. The downtrend will be completed as soon as the price breaks above the top of the MF sloping channel and pivot 82.98 (as shown below):
Ivan Zhigalov
