What BOJ Policy might do to the GBP/JPY?
GBP/JPY is on a relentless uptrend fueled by ultra-low interest rates in Japan.
On Friday, The Bank of Japan (BoJ) Governor Kazuo Ueda stated that it was too early to declare victory on inflation. On the other hand, the currently prevailing technical recession in Japan could lead to BoJ delaying its plan to tighten the monetary policy. All these factors are weighing
negatively on the Japanese Yen.
However, certain reports coming out of Japan suggest that the Government is planning
an official end to the deflation. So, if BoJ signals a shift in their ultra-loose monetary Policy,
JPY could gain strength.
Technically, the area around 191 could offer some resistance. So, in case of further bearish
price action near 191, we can consider sell entries.
On Friday, The Bank of Japan (BoJ) Governor Kazuo Ueda stated that it was too early to declare victory on inflation. On the other hand, the currently prevailing technical recession in Japan could lead to BoJ delaying its plan to tighten the monetary policy. All these factors are weighing
negatively on the Japanese Yen.
However, certain reports coming out of Japan suggest that the Government is planning
an official end to the deflation. So, if BoJ signals a shift in their ultra-loose monetary Policy,
JPY could gain strength.
Technically, the area around 191 could offer some resistance. So, in case of further bearish
price action near 191, we can consider sell entries.
Comment:
300 pips profit from the sell at 191 area