The Japanese yen is not afraid of the BoJ

This Wednesday the USD / JPY pair is trading down, the yen once again found a reason for growth - The Bank of Japan did not make any important decisions at the April meeting.

The Japanese yen is pushing forward - The Bank of Japan by the results of the April meeting left everything in its place, confirming that the monetary base will expand to 60-70 trillion yen per year. Increased incentives in the Japanese economy are postponed - probably until mid-summer, when the effect of increasing the sales tax rate will be objective and bold.

However, few expected that during this particular time the BoJ will become more active. However, investors have no illusions about the fact that the Bank of Japan will remain indifferent to the economic process: now it is clear that economic growth will lose a little momentum and if the regulator reacts during the summer, it will be a positive effect.

Interests and released forecasts for the GDP and inflation for the current year – the expectations are slightly revised. The average growth forecast for the consumer price index in Japan in 2014 involves achieving a level of 1.9% (full match of expectations from January). GDP expectations for 2014 are 1.1% vs. January at 1.4%. In 2015, the Japanese economy will expand by 1.5%.

Everything else is extremely clear: the Japanese regulator will modernize its policy according to the economic realities, BoJ is prepared to react, and the economy is under supervision.

Naturally, this gives a chance for growth of the yen at least in the first half of today's session - then everything will depend on the behaviour of the USD.

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.