11 Jul 2013
BoJ next: Impact on the USD/JPY
FXstreet.com (Barcelona) - The USD/JPY is getting into close contact with the 99.00 handle again, following an early low of 98.25, which was followed by a rebound faltering at the 99.55 vicinity.
The BoJ monetary policy decision will be announced from 3GMT onwards, and market participants have set low expectations this time, with the general assumption inclined to believe that the BoJ will not rush on further policy responses.
According to Valeria Bednarik, Chief Analyst at FXstreet.com, "Yen weakness is no longer a given fact, and market players have already priced in all the facilities the BOJ can provide. At this point, there’s not much the Central Bank can do to trigger a strong sell off in the local currency, besides providing market players with a surprise of further easing, or stimulus to fight local economic stagnation." As a result, USD/JPY will be dependent on USD behavior rather than local news, Bednarik added.
The BoJ monetary policy decision will be announced from 3GMT onwards, and market participants have set low expectations this time, with the general assumption inclined to believe that the BoJ will not rush on further policy responses.
According to Valeria Bednarik, Chief Analyst at FXstreet.com, "Yen weakness is no longer a given fact, and market players have already priced in all the facilities the BOJ can provide. At this point, there’s not much the Central Bank can do to trigger a strong sell off in the local currency, besides providing market players with a surprise of further easing, or stimulus to fight local economic stagnation." As a result, USD/JPY will be dependent on USD behavior rather than local news, Bednarik added.