- The yen loses moment before the decision of the Bank of Japan.
- The expectation grows around what the central bank will decide.
- USD/JPY corrects upwards, from lows since May.
The USD/JPY is rising for the second day in a row, recovering after falling to the lowest since May at 127.21. The pair reached as high as 129.16 on Tuesday, but has yet to gain a foothold above 129.00. The decision of the Bank of Japan will be known on Wednesday.
The Japanese central bank meeting (BoJ) generates great expectations as there is speculation about the possible announcements, which, although they may not imply immediate changes, would imply a change in the strategy and direction. There is speculation about a possible “pivot” that would be the beginning of the end of the ultra-expansive policy. This is getting a lot of attention and will lead to a lot of volatility in the Asian session on Wednesday.
In the run up to said meeting, the yen has been rising in the market. The rise of the USD/JPY in the last hours reflects a correction to said movement. The trend of the pair is still clearly bearish and a change in the BoJ could push it lower.
On Tuesday the dollar tries to recover ground in the market, in a day of great calm. The economic calendar is light, highlighting the Empire manufacturing report.
Wall Street It will return to normal operation after the holiday on Monday. Treasury yields are rising which gives some support to USD/JPY gains.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
