USD/JPY (current price: 109.30)
The financial leaders of the seven most developed countries met at the end of last week in Sendai andthe Japanese economy together with the related monetary policies was in the spotlight. Although the participants agreed that “There is a consensus that monetary policy is well-adapted and there are no big discrepancies in currencies, so there is no need to intervene (…)”, the BOJ’s recent moves have been heavily criticized. The pair broke below the 110 level and drifted lower all day long as traders now think that the BOJ won’t use new measure to boost the economy.
Our assessment: USD/JPY trades close to its multi-year lows at 105.50, despite the recent strength of the Dollar, which might mean further downside for the pair if the Fed decides to keep interest rates steady.
