The Bank of Japan is still determined to take more steps aimed at easing the bank’s monetary policy if necessary. This was confirmed by Mr. Kuroda, who is Governor of the Bank of Japan. Still, some of the local experts assume that the central bank is not going to make any changes to the monetary policy during the forthcoming meeting in April.
At the same time, Mr. Kuroda can see some progress in reaching the inflation target and that’s why he is sure that the rate of inflation is going to hit the 2% inflation target set by the central bank, and this is going to happen in the near future. Still, during his recent speech, Mr. Kuroda highlighted several external threats. With that being said, the Bank of Japan keeps on monitoring the situation in international financial markets as more and more investors are going risk-averse amid uncertainty over economic prospects all around the globe.
Still, the overall tone of the speech was confident, which is why more and more financial experts believe that the Bank of Japan is not going to expand the monetary easing through starting more asset purchases or diving deeper into negative interest rates.
FOREX
In the meantime, the Japanese Yen is still rallying against the U.S. Dollar, which means that USDJPY is going down. To be more specific, the currency pair is moving within the scope of wave 3/C of level Weekly2.
A couple of days ago, the price completed sub-wave 5 or the Hound of the Baskervilles pattern by Elder/MF. A break below the 107.62 low is going to extend the existing move even more. If that’s the case, the key levels of support are 106.65/46, 103.81/55. Alternatively, a break above MF pivot 113.79 and the top of the descending MF sloping channel is going to complete the existing wave.
