BOJ: No Credibility As A Deflation Fighter

Henry Liu Updated on

boj
(JP) The USD/JPY was at 2-month lows and below the 80.30 level. Japanese official rhetoric could pick up at these levels despite the Golden Week holidays. Japanese Yen is the standout in an otherwise holiday-subdued trading session in Asia, as investors continue to parse the mixed Bank of Japan policy decision and a weaker than expected US Q1 GDP. Analysts at SocGen in particular were unimpressed, noting the BOJ action “is not sufficient to recover long-lost credibility as deflation fighter.”

WHAT DOES THIS MEAN?

Market is watching the 80.00 level closely and if USDJPY is unable to recover, then I think sellers will coming and possibly push this pair down to the 77.00 level… SocGen’s view is definitely echoed in the financial community and the ball is now in BOJ’s hands to rein in JPY bulls.  Also understand that market perception is a powerful thing, if left unchecked, we could see another test of the low on USDJPY pair.

Henry Liu

My name is Henry Liu, and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; my goal (and vision) is to educate every trader on how to take advantage of news trading and become more balanced traders.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *