Bank of Japan on Watch: USD/JPY - Forex News by FX Leaders
USD/JPY

Bank of Japan on Watch: USD/JPY

Posted Thursday, April 25, 2019 by
Rowan Crosby • 1 min read

It appears to be a very quiet session ahead with the ANZAC day holiday, keeping markets closed in Australia and New Zealand.

Currently, the USD/JPY is the major pair to be watching ahead of the upcoming BOJ meeting.

This meeting (and most from the BOJ really) are not always the big market movers, certainly in terms of Central Bank announcements. There is no set time for this release so we will be on watch over the next few hours.

The BOJ is likely to leave its policy rate unchanged at -0.1%. It will be a similar story for the inflation forecasts with the central bank likely to extend its forecast to 2021 and suggest that inflation is unlikely to reach the 2% target. Something that everyone is really expecting to be the case.

This will be the first time the BOJ will provide forecasts for GDP and Inflation so it is worth noting the outlook. There is some chance they could really cut their economic forecast for the next 12 months given the sluggish overall economy and global issues that continue to weigh heavily.

USD/JPY Technicals

The Yen has been in a relatively tight range recently hovering around the 112.00 level.

After yesterday’s strong breakout in the USD (looking at the DXY), the USD/JPY followed suit and has started pushing higher.

A weak outlook from the BOJ today, might very well lead to some downside in the JPY and boost this pair further to the upside, so that would be the first thing I would be watching for.

There is plenty of open space above on this chart as we trade at the highest level of 2019.

USD/JPY
USD/JPY – 240min.
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