The Japanese authorities are still trying to fight deflation. The Bank of Japan hasn't give up trying to reach their inflation goals. In particular, the president of the Bank of Japan assume that number-one task is to make the local business circles abstain from deflationary mindset.
With that sad, despite the fact that some economists criticizing the central bank, Mr. Kuroda, who presides over the BOJ, keeps on reiterating that the central bank is going to pursue its inflation goals by all means anyway. It should be noted that today's inflation target is 2%, which is certainly far from the current inflation rate, Masterforex-V Academy reports.
In particular, Mr. Kuroda assumes that the existing inflationary expectations (which are closely tied to the current monetary easing) directly affect the real rate of inflation. At the same time, he believes that the very fact that the BAnk of Japan stays committed to its inflation ary goals is going to increase inflation expectations in the near future. The central banks have to stay committed to this if it wants to keep those expectations strong at all times untile the target is eventually hit.
At the same time, the central bank's economic projections look fairly optimistic. In particular, they say the the pace of economic growth in Japan is ging to be higher than expected. At this point, the expectations are staying around 0,5%. At the same time, they expect the inflation to accelerate and hit the 2% target in 2015.
As far as the Japanese Yen is concerned, the determination shown by the Bank of Japan keeps on exerting bearish pressure on the national currency, Masterforex-V Academy reports. In particular, USDJPY is going up within the cope of another upswing represented by wave 3/C of level Weekly2. If the rally continues, the price is going to continue the pattern to reach the following targets: 119.09, 120.15, 122.93. Alternatively, a break below the bottom of the ascending MF sloping channel and pivot 106.24 will indicate the ned of the wave.
