When the BoJ increased interest rates in March, for the first time in 17 years, the Yen continued to weaken due to the perceived lack of commitment toward further rate hikes.
In April the BoJ kept rates on hold at 0.10%, which saw the Yen react with further weakness.
The BoJ is due to release its Policy Rate and Monetary Policy Statement tomorrow (Friday).
With the USDJPY currently at the 157.25 price level, a resumption of strength on the DXY following the FOMC decision yesterday could see the USDJPY climb up to the resistance level of 158 before the BoJ decision.
If the BoJ decides to keep rates on hold and not take any further action on reducing its bond purchases, the Yen could weaken further, pushing the USDJPY higher toward the all time high of 160.
This is likely to make it very interesting as it would reignite the speculation of a possible currency intervention from the BoJ
In April the BoJ kept rates on hold at 0.10%, which saw the Yen react with further weakness.
The BoJ is due to release its Policy Rate and Monetary Policy Statement tomorrow (Friday).
With the USDJPY currently at the 157.25 price level, a resumption of strength on the DXY following the FOMC decision yesterday could see the USDJPY climb up to the resistance level of 158 before the BoJ decision.
If the BoJ decides to keep rates on hold and not take any further action on reducing its bond purchases, the Yen could weaken further, pushing the USDJPY higher toward the all time high of 160.
This is likely to make it very interesting as it would reignite the speculation of a possible currency intervention from the BoJ
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Join my mailing list jindaotai.com/joinme
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.