The king of comedy is at it again. In the last market update we mentioned him commenting about the inflation in Japan. He said that the 2% inflation target is reachable, although in my opinion the BOJ (Bank of Japan) must aim at 1% first. Hell, even that looks impossible from what we have seen in the last few years.

He is going even further now. Just when I was hoping that no one noticed his last comments which would make him look like a laughing stock, he goes and adds more deliberate comments.

Just a while ago he said that the BOJ will let inflation run above the 2% target. Now to me that sounds like a phrase from the Austin Powers movie. The next line you instinctively wait to hear after this is “and we will rule the entire world”.

OK fine, that´s some wishful thinking from Kuroda, but doesn´t he know that inflation needs economic vitality, which the Japanese economy has been lacking since the “90 financial crisis there?

Hasn´t he checked the facts recently? How can a large economy go from deflation and recession/stagnation to plus 2% inflation in a few months? The earnings year/year fell by 0.1%, the producer inflation (PPI) declined by 3.2%, retail sales shrank by 2.1%. The list goes on.

Higher oil prices might throw Kuroda a life line, but they won´t take inflation to 1%, let alone more than 2%. Meanwhile, the Yen doesn´t care for his comments as USD/JPY is 50 pips lower since he started early this morning.

That presents a good opportunity to buy this forex pair at these levels. That´s why we opened a buy forex signal a while ago in this forex pair. The 50 and 100 moving averages on the hourly forex chart seem to be providing strong support, which is another plus for us. Let´s see how it goes.