Solid News

Bank of Japan Continues its Ultra-soft Monetary Policy

3/15/2023 12:26 PM

Against the negative dynamics of the American currency, the USD/JPY pair is correcting at 134.51.

The yen is trying to grow against the publication of the report of the Bank of Japan meeting: no global changes in monetary policy have been made but there were some adjustments. Thus, the regulator has appointed additional auctions for the sale of government bonds, and 10-year bonds will be offered for purchase at a rate of 0.5% every business day through consolidated-rate transactions. Also, the agency will independently increase the volume of buyouts of government bonds from the market at a consolidated rate and will continue to purchase exchange-traded funds and real estate trusts with a cap of about 12.0T yen and 180.0B yen, respectively, as well as corporate bonds to return their outstanding value to 3.0T yen, as it was before the coronavirus pandemic.

The US currency is weakening, trading at 103.100 in the USD Index. The February report on consumer prices justified the expectations of experts, and there was almost no reaction from the market: the indicator increased by 0.4% in February, which led to a slowdown in annual growth to 6.0% from 6.4% earlier, and the core inflation rose by 0.5%, declining to 5.5% YoY from 5.6% earlier.

On the daily chart, the trading instrument is moving within a corrective trend, holding below the support line of the local channel at 134.00.

Technical indicators are in a buy signal that has almost changed to a downside one: fast EMAs on the Alligator indicator are actively approaching the signal line, narrowing the range of fluctuations, and the AO histogram is forming downward bars above the transition level.

Resistance levels: 135.60, 137.90. | Support levels: 133.20, 130.50.

Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392

Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2024