The Japanese yen climbed to its highest level in a week versus the green currency after the Bank of Japan refrained from adding further stimulus.
BOJ Policy Meeting Summary
-BOJ Governor Haruhiko Kuroda help his vow to expand the monetary base to an annual pace of 80 trillion yen.
-The BOJ slashed its growth and inflation estimates for the year ending March.
– Kuroda said economic recovery would strengthen gradually and push prices higher. “Trend inflation is improving steadily and is expected to continue improving,” said Kuroda.
-He hailed his huge stimulus program by describing its positive impact in combating the “deflationary mindset” that hit the economy for 15 years.
-The yen rose against to the dollar to take the pair to a low of 118.48, while it is currently hovering around 118.83.
-The dollar has been negatively affected by the release of downbeat U.S. first-quarter growth data. In addition, while the Fed said the slowdown in growth is transitory, it suggested any interest rate hike would not take place soon.
-The yen lowered its gains after Kuroda said: “we won’t hesitate to adjust policy on any signs of change in trend inflation.”
-Since hitting a peak of 121.83, the USDJPY has been moving in a sideway trend, unable to set a clear upside or downside direction.
-The breach of support at 118.40-118.30 could trigger a drop and may put the pair at the beginning of a bearish direction.
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