Today we will look at the USD/JPY news as our Midweek Pair Focus.
[column size=”1-2″ last=”0″ style=”1″] Before June 1st of this year, for China and Japan to trade, they first converted their respected currencies into U.S. Dollars. As of June 1st, they now deal with each other directly. In the long term, this may have an effect on both Asian economies.
At tentative times this evening, Japan’s Monetary Policy Statement and their Overnight Call Rate will be released by Governor Masaaki Shirakawa and the Bank of Japan (BOJ).
The Monetary Policy Statement is released about 14 times per year and carries heavy weight in the market. It includes their decision on interest rates and gives insight into future economic matters.
Larger picture: wanting prices not to fall further and in order to reach a +1% inflation target, it is possible that the BOJ could raise the QE amount to accomplish that.
For a few weeks the USD/JPY has been in about a 90 pip channel. It’s looking to break out and I think it will be bullish.[/column]
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Last week’s bullish non-farms was a powerful positive release for the USD and as we near the election, my opinion is the dollar could for some time make the bulls happy.
The nonfarm payrolls increased by 163,000 around 63,000 more than the projected amount. Tomorrow, the unemployment rate for the U.S. Will also be released. [/column]
Written By: Tony College
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