8 Apr 2015
USD/JPY: 120's lost but not forgotton
FXStreet (Guatemala) - USD/JPY is currently trading at 119.93 with a high of 120.35 and a low of 119.63.
USD/JPY has been consolidating below the 120 handle since being offered and the supply that came in to meet yesterday's rally from 119.60 up to the 120.40's. Overnight, the headline news was the BoJ leaving their large monetary stimulus unchanged. The announcements left the major in supply and dropped around half a cent. The BoJ revised their inflation outlook lower but retained an optimistic view on the economy.
The key take away was that the slowing pace of prices are moving away from the idea that Abe's reflation target of 2% could be reached by March 2016 and this then suggests that extra stimulus will be needed, which supports a bullish longer term outlook for the pair.
USD/JPY has been consolidating below the 120 handle since being offered and the supply that came in to meet yesterday's rally from 119.60 up to the 120.40's. Overnight, the headline news was the BoJ leaving their large monetary stimulus unchanged. The announcements left the major in supply and dropped around half a cent. The BoJ revised their inflation outlook lower but retained an optimistic view on the economy.
The key take away was that the slowing pace of prices are moving away from the idea that Abe's reflation target of 2% could be reached by March 2016 and this then suggests that extra stimulus will be needed, which supports a bullish longer term outlook for the pair.