USDJPY Yen Slide Continues as Markets Eye Trump Tax Announcem

The Bank of Japan is expected to hold the course and maintain interest rates at -0.10%. The negative rates are part of the BoJ’s ultra-loose monetary policy, which is expected to continue until inflation levels move closer to the central bank’s target of around 2 percent. Japan’s economy has improved in recent months, as a weak yen and stronger global demand have boosted exports and revitalized the manufacturing sector. At the same time, consumer inflation and spending data remains weak, which has weighed on the economy. Household Spending and Tokyo Core CPI, which are key consumer indicators, are both expected to post declines. If these readings are softer than expected, the dollar’s rally against the yen could continue.