USD/JPY tops 111 on extended Fed fallout, BOJ in the background

Dollar/yen just is on the up and up. The major pair continues rising and has reached 111.27. The next line of resistance is the former triple-bottom of 111.60. It is followed by 112.20 and 113.

The main driver remains the Fed decision. Not only did the Fed raise rates desptie falling inflation, but they also dismissed this slowdown as due to one-off factors. They left the path of interest rate hikes unchanged and expressed confidence on the economy.

That was on Wednesday evening and the effect continue on Friday morning. The greenback is gaining ground also against more stubborn currencies but USD/JPY stands out.

BOJ in the background

What about the yen side of the equation? The Bank of Japan also convened, but it left its policy unchanged. The interest rate remains a negative -0.1% and the bond-buying scheme remains unchanged. The team led by Kuroda continues aiming for a 0% yield on 10-year bonds.

Some had expected the BOJ to begin talking about the end of the program. They did acknowledge that households are spending more, but prices are not really rising.

Get the 5 most predictable currency pairs[1]

from Forex Crunch

from Online Forex Trading Resource
View thesource article here


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s