BoJ preview: What to expect in USD/JPY?

By FXStreet FXStreet (Guatemala) – USD/JPY has been trading within familiar ranges for as long as the hourly chart goes back on the screen and without scrolling it back beyond September’s business. A great deal of emphasis has been on the US and the Fed. Today, even for an hour or so, it is going to be about the BoJ.

BoJ anyone’s guess, ( a slight bias to hold)

Today sees the outcome of the BoJ’s two-day meeting on monetary policy. The bias for the BoJ to hold comes with a) timings b) exchange rate c) data.

BoJ on data

Of late, the data has not been a mile away from where the BoJ is satisfied with the recent Tankan survey a mixed one, with both good and poor news. The good news came in the non-manufacturing sector with business sentiment improving. Whereas the poor data stayed with manufacturing business sector worsening. Inflationary data and a drop in the core CPI can be blamed on the price of energy while core CPI that excludes energy was up y/y 1.1% and thus the BoJ’s 2% target for inflation for 2016 is still a possibility.

USD/JPY exchange rate

The exchange rate remains in at a …read more

Source:: FX Street