fbpx

Japan braces for soft retail sales, CPI

Japan braces for soft retail sales, CPI - MarketPulseMarketPulse

image

Home/Central banks/COVID-19/FX/Newsfeed/Technical analysis

Share 0

The Japanese yen has posted gains on Wednesday, recovering most of the losses from the Tuesday session. Currently, USD/JPY is trading at 103.40, down 0.23% on the day.

BOJ minutes discuss tweaks to policy

Japan continues to struggle with an economic downturn and a resurgence in the number of Covid cases. In case you think that this is reason enough for the Bank of Japan to entertain drastic changes in monetary policy, think again. The ever-cautious central bank remains committed to an ultra-accommodative policy, although this has failed to raise weak inflation levels, and the bank’s inflation target of around 2 percent appears wholly unrealistic. The minutes from the October policy meeting indicated a discussion as to how to reach this inflation goal, but clearly the bank does not plan to make any wholesale changes. Still, some of the nine board members expressed reservations about the current policy. One member suggested tweaking the purchase risky assets such as exchange-traded funds needed to be tweaked. Another said that there was a need to “deeply discuss” the bank’s policies with regard to achieving its inflation target. There was a stark reminder about the lack of inflation earlier in the day, as BoJ Core CPI fell by 0.1% in November. The index has failed to post a gain since June.

The yen has made modest gains against the dollar in recent weeks, and USD/JPY is trading at its lowest level since April. The sagging US dollar has fared very poorly against risk currencies, while the safe-haven yen has not made sharp gains against the dollar. The BoJ minutes gave the exchange rate scant attention, but if the yen moves closer to the psychologically important 100-level, we could see the BoJ express its unease at the high value of the yen.

.

USD/JPY Technical Analysisimage

USD/JPY is testing resistance at 103.45. This is followed by resistance lines at 104.01 and 104.72 102.75 is providing support. The next support line is at 102.19 The pair is trading at the 10-day MA line

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.

Kenny Fisher

Latest posts by Kenny Fisher (see all)

Original author: Kenny Fisher

Copyright

© MarketPulse

Loonie yawns as building permits surge
Flipclutch Research: AR/VR social networking may b...
 

By accepting you will be accessing a service provided by a third-party external to https://chatpips.com/

 
     
 

Broker Search

Latest Spot Rate

 
23 January 2021
Key risk events today: ECB President Lagarde Speaks. (Previous analysis as well as outside sources – italics). EUR/USD: Weekly gain/loss: +0.79% Weekly close: 1.2170 Weekly perspective:...
23 January 2021
First, a review of last week's events: - EUR/USD. We published a chart seven days ago that clearly showed how the correlation between the S&P500 index and EUR/USD was broken in early January. But now everything is back to normal: the S&P500 c...
23 January 2021
BEIJING, Jan. 23, 2021 /PRNewswire/ -- Huami Corporation ("Huami" or the "Company") (NYSE: HMI), today announced that it will hold its 2020 Annual General Meeting of Shareholders (the "AGM") at Huami Co., Ltd. Building B2, zhongguancun No.1, No.81 Be...
23 January 2021
Market Insights Podcast (Episode 154) - MarketPulseMarketPulse Home/Newsfeed/Podcasts Share 0 Jonny Hart looks back on the week’s business and markets news with OANDA Senior Market Analyst Ed Moya in New York.  This week they discuss the President Bi...
23 January 2021
US Close –Stocks pare losses after record PMIs and housing data, FX, Oil softer post EIA, Gold clawing back, and Bitcoin rebounds - MarketPulseMarketPulse Home/Commodities/Crypto/FX/Indices/Metals/Newsfeed/Oil/Treasuries Share 0 US stocks pared the e...
How It Works | About | Contact | Contributors | Privacy Policy | Advertise
© 2009 - 2021 ChatPips. All Rights Reserved. Terms of Use: The content on this website is solely for educational and informational purposes and is not a substitute for official documentation of the original owners. Daily economic news is provided by third-party website. This site is not operated by, sponsored by, endorsed by, or affiliated with any parties in any way. The website owner, the authors, the publishers, and all affiliates of ChatPips.com assume no responsibility or liability for your trading and investment results. You should always check and confirm with several sources with your licensed financial advisor and tax advisor to determine the suitability of any investment before making your final decision. Your continued usage and browsing of information on this website constitute your agreement to this Terms of Use. If you do not agree, please do not proceed to use this website. Brokers Directory: The companies license information were obtained from respective local jurisdiction. All other company and/or product names are trademarks and/or registered trademarks of their respective owners.