WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

FX & Equities: BOJ Minutes & USD/JPY; Ranges

Posted by Akhilesh Ganti on Jul 17, 2014 10:51:00 PM

The Bank of Japan released the minutes of their June12/13 meeting today and, as expected, were unanimous in wanting to continue the reactive, wait-and-see approach towards future monetary policy.

Salient points

  • Will continue to expand the monetary base at an annual pace of YEN 60 to 70 Trillion.
  • The easing(QE) implemented so far appears to be having the intended impact.
  • Will continue to ease until the targeted 2% inflation level is reached.
  • While long-term rates have been stable at low levels due to bond purchases, real interest rates have been declining.
  • Shift of Japanese firm's production overseas unlikely to accelerate further due to the Yen's depreciation.

Meanwhile USD/JPY, which has been constrained within a 300 pip range for the past few months, appears poised to test the key support level at 100.80. A clear breach of that level could see a fairly quick move down to 99.50 and give the BOJ much cause for concern.

{charts: WWM}(click to enlarge)

usdjpy 071814 w

Ranges:{WWM's New ALPHA Trader - DAILY charts [EUR, GBP, AUD, YEN, GOLD, OIL, DXY]}(click to enlarge)

FX 071814

Equities:{WWM's New ALPHA Trader - DAILY charts [Dow30, SP500, Nasdaq100, Nikkei225, China, HKG40, Nifty50, ASX200]}(click to enlarge)

STOCKS 071814

 

Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

FAQ CenterLEARN MORE >>
Browse our frequently asked questions and find your answers right away.

VideosLEARN MORE >>
Access to the educational lessons, webinars and platform walkthroughs.

READY TO TRY THE MARKETS?

Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!