The Japanese yen continues to rise
21.05.2014
The USD / JPY pair falls for sixth session in a row, but today the Bank of Japan, unwittingly, stimulated a reduction in the instrument.
The Japanese yen rises and has reached the highs of October last year. At this, it seems, the yen is not going to stop. The session low is now 100.82.
A reason for further decrease in the pair was the comments made by the head of the Bank of Japan, Mr. Kuroda. He noted that the controller is ready to continue to incentivize the market in order to achieve the inflation target of 2% indicated earlier. Simultaneously Kuroda stressed that the monetary policy will be adjusted when necessary.
The Bank of Japan said that the demand in the country remains stable despite the deterrent in the form of increased sales tax (version of VAT). By the way, in Japan it is expected that the negative effect of the revision of rates will be reduced by the end of this summer. In the second quarter decline in GDP is not excluded, but further on the upward trend will continue in force.
The USD / JPY pair is very sensitive to such statements and comments - everything connected with the recognition of the Central Bank of the weak points in the Japanese economy, plays into the hands of the yen. It is possible that during today's session, the instrument will reach the price of 100.50; further movement can identify the target at 100.00.
RoboForex Analytical Department
The Japanese yen rises and has reached the highs of October last year. At this, it seems, the yen is not going to stop. The session low is now 100.82.
A reason for further decrease in the pair was the comments made by the head of the Bank of Japan, Mr. Kuroda. He noted that the controller is ready to continue to incentivize the market in order to achieve the inflation target of 2% indicated earlier. Simultaneously Kuroda stressed that the monetary policy will be adjusted when necessary.
The Bank of Japan said that the demand in the country remains stable despite the deterrent in the form of increased sales tax (version of VAT). By the way, in Japan it is expected that the negative effect of the revision of rates will be reduced by the end of this summer. In the second quarter decline in GDP is not excluded, but further on the upward trend will continue in force.
The USD / JPY pair is very sensitive to such statements and comments - everything connected with the recognition of the Central Bank of the weak points in the Japanese economy, plays into the hands of the yen. It is possible that during today's session, the instrument will reach the price of 100.50; further movement can identify the target at 100.00.
RoboForex Analytical Department
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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.