Japanese Yen rises as BoJ keeps monetary policy unchanged

FXOpen

Japanese Yen (JPY) strengthened against US Dollar (USD) on Tuesday as the Bank of Japan (BoJ) kept the monetary policy unchanged. The pair is poised for a breakout through the rising wedge formation because the wedge has been too squeezed now; the breakout will provide clear direction to the pair.

As of this writing, the pair is being traded around 103.27 with immediate resistance seen near 103.35 that is the 23.6% fib level ahead of 103.65 which is the trendline resistance. A daily close above the trendline resistance could push USD/JPY into considerably stronger bullish momentum, hence exposing 104.10 and 104.50.

uj ctm

On downside, the pair is expected to find support near 102.00 handle i.e. the psychological level and the 38.2% fib level ahead of 101.50 that is the channel support as shown in the above chart. A daily close below the channel shall open doors for further downside movement towards 101.200 and 100.50.

The technical indicator, Commodity Channel Index (CCI), is retreating from the extreme overbought territory with 160 reading on the daily chart. A CCI reading above 100 indicates overbought bias among traders.

Meanwhile, the Bank of Japan (BoJ) kept the benchmark interest rate unchanged at 0.1%. The central bank also pledged to continue the record quantitative easing at its current pace of $60 trillion to $70 trillion every year, the decisions were broadly in line with the median projection of different economists.

The International Monetary Fund (IMF) has predicted that the total debt of Japan could be equal to around 242% of the total size of the economy by the end of the ongoing year.

It is pertinent that the economy is also likely to shrink by 3.9% during the course of three months from April, according to the forecast of various analysts surveyed by Bloomberg. The Asian nation had posted the downbeat growth report for the previous quarter, showing the lack of foreign investment and exports.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: The American Currency Resumes Growth EUR/USD Analysis: The Rate Updates Its Multi-month Low Market Analysis: Dollar Falls After Inflation Data Release Euro Analysis: ECB Cautions Against Rate Cuts Amid Inflation Battle Market Analysis: GBP/USD Struggles While EUR/GBP Eyes Increase

Latest articles

Shares

Top 5 Stocks to Watch in October: Bank on the Backfoot, No Thirst for Coca-Cola, Tech Giant Takes Dip and Electric Vehicle Volatility

October is here, and as the markets enter a new month, we take a closer look at five stocks that could be of significant interest to investors. 1) Bank of AmericaBank of America stock has taken a dive over the

Forex Analysis

Market Analysis: The American Currency Resumes Growth

The beginning of October turned out to be favourable for continued growth in the US dollar. From the data published yesterday, it follows that in September, the US manufacturing business activity index (PMI) rose to 49.0 against the forecast

Forex Analysis

EUR/USD Analysis: The Rate Updates Its Multi-month Low

Never in its history has the euro fallen for 11 weeks in a row against the dollar, but it happened. The minimum has been set for 2023. The reason seems to be that in an environment where central banks are

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.