The Bank of Japan is going to get back to discussing the possibility of new monetary easing steps during the forthcoming meeting planned for this month, Market Leader reports. The key reason for the that is believed to be poor economic figures coming out over the last few months. This is threatening economic recovery as well as the central bank’s ambitious plan to make the rate of inflation hit the 2% target.
When talking about possible easier policies, analysts say that quantitative easing is a more preferable option than further interest rat cuts under the existing circumstances. Japanese financial companies haven’t yet adapted to the introduction of negative interest rates introduced by the Bank of Japan in January 2016. Still, some experts believe that the central bankers are going to find it hard to make any decision in favor of further easing. The thing is that since introducing those negative interest rates, the bankers have been very cautious when it comes to discussing any further economic stimuli.
In the meantime, Mr. Kuroda, who is currently presiding over the Bank of Japan, keeps on reiterating his opinion that the Japanese economy is still recovering at a steady pace. At the same time, he believes that ultra-low oil prices are the only major reason why the rate of inflation still cannot hit the 2% target. While some of the central bankers share this point of view, other experts believe that the economic growth in Japan is lowing the momentum, which is still expected to trigger an inflation hike. That is why they expect the BOJ to revise the inflation forecast and postpone the expectation of inflation hitting the 2% target to a more distant future.
FOREX
Masterforex-V Academy experts report that the Japanese Yen is still gaining more strength against the U.S. Dollar, which means that USDJPY is still going down. To be more specific, he currency pair is moving down within the scope of wave 3/C of level Weekly2. If to dive deeper into the wave structure of the move, we can see that the price is going on with sub-wave 5 or the “Hound of the Baskervilles” pattern by Elder/MF.
The closest levels of support are 106.65, 103.66/55. A break above MF pivot 113.79 and the top of the MF sloping channel is going to put an end to the existing move.
