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.

Browse our frequently asked questions and find your answers right away.

Access to the educational lessons, webinars and platform walkthroughs.


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