BOJ Sticks to Its Guns
The Japanese Yen is back under pressure today following the July Bank of Japan meeting overnight. While the rest of the G10 is firmly embarking down a path of monetary tightening, with even the ECB set to tighten today, the BOJ continues to reaffirm its commitment to easing. BOJ governor Kuroda pushed back against any idea of a near-term rate hike, citing the uncertainty and fragility within the Japanese economy.
Commenting on the outlook for economy, Kuroda said: "The economy is in the midst of recovering from the pandemic. Japan's worsening terms of trade is also leading to an outflow of income. As such, we must continue with our easy policy to ensure rising corporate profits lead to moderate wage and price growth."
Technical Views
USDJPY
The rally in USDJPY has seen the market breaking firmly above the 136.88 level. With price still moving within the broad bull channel which has framed price action over recent months, the focus is on a continuation higher while this level holds as support. 146.97 is the longer-term objective for bulls. Worth noting we are seeing some bearish divergence in momentum studies as price moves higher here so be alert to any potential reversal signals.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.