20 Jan 2015
USD/JPY risk events ahead in the BoJ
FXStreet (Guatemala) - USD/JPY is currently trading at with a high of 117.69 and low of 117.50 and up 0.06% on the day so far.
USD/JPY is heavy looking around the opening of the bearish gap on the 15 min chart having staged an impressive drift to the upside, moving away from the 117.00 level and coring 117.80 overnight where the advance was capped. Looking away from the price action, fundamentals, at first glance, suggest benefits for the Japanese economy through the price of oil given the nation imports around 90% of the black stuff for its energy needs.
However, lower prices will not be aiding the BoJ's inflation target of 2% and we will be listening carefully to the BoJ's statement this week and press conference for signals of concern around the concept of deflation within the economy and to what extent this might be included in this month BoJ decision, although it is widely unexpected that the Bank will take any action too soon and that there will be no changed in policy this week. Meanwhile, the Yen's safe haven status is likely to underpin the currency's strength below the 120 handle in times of uncertainty or shocks.
USD/JPY is heavy looking around the opening of the bearish gap on the 15 min chart having staged an impressive drift to the upside, moving away from the 117.00 level and coring 117.80 overnight where the advance was capped. Looking away from the price action, fundamentals, at first glance, suggest benefits for the Japanese economy through the price of oil given the nation imports around 90% of the black stuff for its energy needs.
However, lower prices will not be aiding the BoJ's inflation target of 2% and we will be listening carefully to the BoJ's statement this week and press conference for signals of concern around the concept of deflation within the economy and to what extent this might be included in this month BoJ decision, although it is widely unexpected that the Bank will take any action too soon and that there will be no changed in policy this week. Meanwhile, the Yen's safe haven status is likely to underpin the currency's strength below the 120 handle in times of uncertainty or shocks.