USDJPY:
As anticipated, the Bank of Japan has opted to maintain its short-term rate target within the 0.15-0.25 per cent range following the conclusion of its two-day monetary policy review meeting on Friday. The BOJ maintains a cautious approach to raising rates, as it believes this could negatively impact economic activity and hinder the demand-driven inflation it is seeking to support.
However, further meetings have been scheduled for Japanese officials in October and December, which may indicate a willingness to consider further rate hikes in light of recent data indicating higher-than-expected Japanese inflation. The growing speculation that Japan’s central bank will raise interest rates again before the end of this year is providing some support for the Japanese Yen (JPY).
The Japan Bureau of Statistics released data on Friday which showed that the national consumer price index (CPI) rose by 3.0% in August, up from 2.8% in July. Meanwhile, the core CPI, which excludes volatile fresh food expenditures, rose 2.8% year-on-year in August, matching market expectations of 2.8%.
Trade recommendation: Trading mainly by Sell orders from the current price level.
Origin: FreshForex
