WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

USD/JPY Fell to 119.40, BOJ Keeps Monetary Policy Unchanged, No Additional QE

Posted by Chris Advincula on Sep 15, 2015 6:18:00 AM

Dollar yen fell steadily from 120.35 to 119.40 (-95 pips) from Asia to Europe following the Bank of Japan's decision to leave monetary policy unchanged on both the ultra low interest rate and their base monetary target of JGBS at the annual pace of 80 trillion yen. The central bank refrained from adding more stimulus even after Japan's economy shrank in the last quarter. The news dissapointed yen sellers who expected more QE, thus yen buying pushed the rate lower.

The vote from the BOJ monetary policy governors came in as 8-1 as expected by many analysts with Kiuchi dissenting once again. However, he did not vote on zero rates as he normally would, but instead voted to taper the annual pace of QE to 45 trillion yen, adding to yen buying interest.

BOJ Governor Kuroda gave an optimistic statement that the central bank sees a gradual recovery of Japan's economy and return to growth and the BOJ members warned of slowing demand in emerging markets was taking a toll on Japan's exports and industrial output.

Expect a short-covering rebound around the 119.00-119.40 level as the NY market opens.


JPY.9.15 resized 600 

Chart: WorldWideMarkets Alpha Trader

Topics: $USDJPY, forex trading, European Session, bank of japan, Japanese Yen, BOJ, Kuroda


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!