USDJPY is growing on Wednesday but emotions might be a reason.
The Japanese Yen is retreating a little bit against the USD on Wednesday. The current quote for the instrument is 109.54.
The bank of Japan had another meeting today, where it left all key aspects of its monetary policy intact, just as expected. Forecasts for the economy’s future also didn’t change. At the same time, the BoJ said that the economy was gathering pace, although being in “dire straits” due to the pandemic.
Investors perceived these words as more pessimistic than earlier, mostly because of weak estimations of industrial production and export.
The regulator’s rhetoric convinced investors that the monetary policy of the Bank of Japan would remain heavily stimulating in the nearest future. Weak consumption and household spending remain critical and can’t fully support the economic recovery in the country. The same can be told about industrial production. Yes, the current economic situation barely has anything in common with the last year’s depression but a lot of problems remain, not least because of limited supplies for manufacturers. Weak inflation is another issue for Japan and it can’t be resolved easily – even after the economy beats the pandemic consequences, it will require the QE program to continue.
Right now, market players are closely watching the US Fed, the meeting of which is scheduled to be over later today. results of this session will directly influence risk attitude and that’s very important for the Yen.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.