Serj Panchuk
The Bank of Japan seems to be positive on the current situation in the national economy. This is confirmed by the BOJ’s April meeting minutes, Market Leader reports. Despite the fact that the central bank decided to revise the time period of reaching the inflation target, Mr. Kuroda assures everyone that this is the right monetary policy to pursue under the existing circumstances.
The economic conditions in Japan are viewed as stable, even though there are minor risks of a slowdown. Speaking about inflation, the central bank says the risks have been building up since the start of the year. Still, the central bankers call for patience and consistency in implementing the existing policy in order to avoid going back to deflation.
At this point, we have already seen the impact of negative interest rates. However, in order to evaluate the entire effect from the steps taken, more time is needed. The minutes also read that setting up price stability is going to take some more time as well.
The question of efficiency in terms of implementing the chosen monetary policy was also on the list of the topics raised by Mr. Kuroda during his speech in the Parliament. The topic is getting more urgent amid another change in the monetary policy forecast made by the Bank of Japan this time. According to the revised forecast, the expected time for the inflation target to be hit is now delayed by 6 months – from September 2017 to March 2018.
Forex
In the meantime, Masterforex-V Academy reports the Japanese Yen is still getting stronger against the U.S. Dollar within the scope of a long-term trend even despite a slight recovery move being developed by USDJPY at the moment. To be more specific, USDJPY is moving within the scope of a bearish momentum – wave 3/C of level Weekly2. However, there is a smaller-scale recovery going on inside of the move – wave b(C ).
On breaking the 105.46 low, the currency pair is going to continue the current wave. The closest levels of support are Fibo levels 105.46, 103.66/55, 100.76/70.
Serj Panchuk
