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22 May 2013
BoJ monetary decision next: Impact on USD/JPY
FXstreet.com (Barcelona) - The Bank of Japan is due to publish its latest monetary policy announcement anytime from 3 to 5 GMT. The consensus is that no additional policy actions will be announced today, which if adding the risk event of Bernanke's testimony later today, it implies that the event may attract a limited number of orders in USD/JPY.
According to Valeria Bednarik, chief analyst at FXstreet.com, "it will be hard for the BOJ to surprise markets this month." Nonetheless, watch comments about the state of the economy, inflation-related and in response to the recent rally in JGB yields.
Valeria adds: "A 2% inflation target remains the priority for PM Shinzo Abe, and market will need a large dose of facilities plus a still negative growth outlook, to take yen bearish run even further. A neutral stance coming from the Central Bank may favor yen gains more after weekend Amari’s wording on enough correction for yen. Buyers however will start surging around 101.25, past week low, as market players are not yet ready to buy the yen in full force."
According to Valeria Bednarik, chief analyst at FXstreet.com, "it will be hard for the BOJ to surprise markets this month." Nonetheless, watch comments about the state of the economy, inflation-related and in response to the recent rally in JGB yields.
Valeria adds: "A 2% inflation target remains the priority for PM Shinzo Abe, and market will need a large dose of facilities plus a still negative growth outlook, to take yen bearish run even further. A neutral stance coming from the Central Bank may favor yen gains more after weekend Amari’s wording on enough correction for yen. Buyers however will start surging around 101.25, past week low, as market players are not yet ready to buy the yen in full force."