BOJ disappoints again - Forex News by FX Leaders

The BOJ (Bank of Japan) held their meeting and issued the statements this morning. The forex market had high hopes for this meeting but the BOJ let them down once again. They increased their QE (quantitative easing) programme to 6 trillion Yen a year from 3.3 trillion previously and that will take place only through  EFT (exchange traded funds) buying. Tha´s just below 60 billion Euros a year. It looks too small compared to the 90 billion Euros that the ECB worth of assets buys in a month.

USD/JPY declined about 300 pips overnight

The base money target remains the same, the same as the interest rates. There will be no change in government and corporate bonds either. That´s what disappointed the market. There´s not a clear line whether the forex market was over expecting or the BOJ under delivered, but as I said in the last update yesterday it takes two to tango. I also pointed out that the BOJ had to exceed themselves today in order to meet the market expectations. Well, they didn´t and here we are.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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