The Bank of Japan abstained from changing its monetary policy during the latest meeting, thus monitoring the effect of the previous steps. The existing parameters of the money-and-credit policy look as follows: the key interest rate isles than 0.1%, the asset purchase program is around ¥70 trillion. There seems to be a positive outcome – the Japanese economy starts recovering.
Nevertheless, it was decided to cut the lending volume by ¥5 trillion in favor of Treasury bill purchases.
Tankan confirms the fact that there is a slow economic recovery seen, attended by better sentiment and forecasts. However, some traders anticipate further economic stimuli amid the continued eurozone crisis.
Forex.
According to , the Japanese Yen continues strengthening against the US Dollar. The experts report that USDJPY is currently forming wave А(С)/С inside a bigger downswing - wave А/В of level Daily2 or higher. The closest major level of support is the MF pivot 78.78. The downtrend will be completed as soon as the price consolidates below the MF pivot 79.95.
