USDJPY – Down
USDJPY:
The Japanese yen (JPY) declined for the sixth consecutive day sliding to a near two-week low against its U.S. counterpart during the Asian session. Growing confidence that the Bank of Japan (BoJ) will wait until April to exit its negative interest rate and yield curve control (YCC) policy has proven to be a key factor undermining the JPY. Moderate US Dollar strength, backed by lower bets on a sharp cut in interest rates by the Federal Reserve (Fed), is lifting the USD/JPY pair.
Larger-than-expected wage increases by large Japanese companies already seem to have set the stage for the Bank of Japan to abandon its ten-year stimulus measures, which should be favorable for the yen. Traders may also refrain from aggressively targeting rates and prefer to stand back ahead of the central bank’s key event. The Bank of Japan is due to announce its long-awaited decision some time later, followed by the crucial two-day FOMC monetary policy meeting beginning today.
Trade recommendation: Trading with Buy orders from the current price level
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