Yuriy Ukazkin
The Bank of Japan has made no changes to the current monetary policy it pursues. This is confirmed by the latest meeting minutes. The central bank’s economic estimates remained unchanged as well. The meeting took place in June and ended up with no major changes as you can see.
To be more specific, the key interest rate is still 0.1% while the asset purchase program is still equal to 80 trillion yen per year. 8 out of 9 senior members of the Bank of Japan voted for making no changes to the interest rate this time. 7 out 9 members also supported the existing asset purchase program volume.
The Bank of Japan is reported to expect low consumer inflation for a certain period of time in the near future. Some of the central bankers say consumer inflation may well go down to zero or even urn negative over the period. At the same time, the expect the 2% inflation target to be hit only in 2017.
Meanwhile, the Bank of Japan is reported to be ready to go on with easing the monetary policy if necessary. The central bank keeps on closely watching the situation in the bond market as well as international financial markets amid increased financial an economic uncertainty worldwide.
FOREX
In the meantime, Masterforex-V Academy experts report that the Japanese Yen is getting stronger versus the U.S. Dollar within the scope of the same uptrend, which means that USDJPY is going down within the scope of wave 3/C of level Weekly3. The currency pair is still developing wave 5 or sub-wave A inside the bigger move.
The key levels of support can be found at 101.39/29, 100.72. A break above the top of the descending MF sloping channel and MF pivot 111.34 is going to put an end to the existing price move.
Yuriy Ukazkin
