New stimulus from the Bank of Japan | 15 6月 2021

15 6月 2021, USD/JPY

New stimulus from the Bank of Japan

USDJPY trading plan:

The Bank of Japan is likely to extend a September deadline for its pandemic-relief programme at this week’s policy meeting, former BOJ board member Makoto Sakurai said. In a policy review in March, the BOJ clarified that it would allow 10-year JGB yields to move 50 basis points around its 0% target in the hope of boosting market trading. But trading volume in the JGB market dwindled to a near-two-decade low in May, prompting some calls for the BOJ to take more steps to revitalise the market such as trimming its bond purchases. This is a negative signal for the Japanese yen.

Investment idea: buy 109.90 and take profit 110.30.

David Johnson
Analyst of «FreshForex» company
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