USD/JPY double bottom; on its way to a reversal?
By FXStreet USD/JPY has opened in Tokyo testing the 4hr 55 sma at 113.12 on the back of the markets preparing for a weaker Yen as a result of the BoJ possibly needing to act on their policy should they desire to reach their headline inflation target of 2% as soon as possible and in the given time frames, unless of course they will abandon the target or switch to the core inflation measure, which excludes fresh food and energy, from the traditional core inflation, which excludes food only, a sin that case they are not a million miles away.
See here for today’s miss: Inflation still light years from BOJ target.
However, very few Central Banks target the core and aim for the headline, and the obstacles for revising the current 2% headline CPI target would be very large. For example, doing so would mean a redrafting of the government-BoJ joint statement signed in January 2013.
Turning to the rest of the day ahead, the key data will come in the US session with the second estimate of Q4 GDP for the US.
USD/JPY levels
USD/JPY: about to confirm double bottom? – FXStreet
“Indicators in …read more
Source:: FX Street
