Solid News

Bank of Japan will Continue the Dovish Rate Until the Inflation is Stable

11/17/2022 10:56 AM

The yen managed to recover some of the lost positions against the sharp depreciation of the US dollar, as well as foreign exchange interventions initiated by the Bank of Japan, and at the moment, the USD/JPY pair is correcting around 139.62.

On Monday, the Bank of Japan Governor Haruhiko Kuroda said the regulator would continue to pursue the "dovish" monetary policy to support economic activity and achieve strong and stable inflation, accompanied by rising wages, which lags behind forecasts for the third consecutive quarter. In the spring, the government plans to hold talks with trade unions and company management, during which an agreement can be reached on increasing employees' wages by 3.0% instead of the 2.0% previously expected. According to officials of the regulator, this will be possible due to a decrease in inflationary pressure in the country to 1.5% due to a correction in world prices for raw materials.

As for the US dollar, macroeconomic statistics remain mainly in the red zone, not justifying analysts' expectations. The data on industrial production in the US prevented the development of the upward momentum of the USD Index and the retreat from 106.500, the volume of which decreased by 0.1% in October instead of the projected growth of 0.2%, which, in turn, contributed to the slowdown in the annual values ​​from 4.96% to 3.28% and the continuation of the negative trend that began in May this year. Commodity stocks in retail trade were worse than experts' expectations. Their volume was corrected by –0.1% from 0.6% a month earlier.

The instrument is trading below the global ascending corridor on the daily chart, which it left at the end of last week.

Technical indicators keep a stable sell signal: fast EMAs on the Alligator indicator are moving away from the signal line, and the histogram of the AO oscillator, trading below the transition level, continues to form downward bars.

Support levels: 137.65, 132.86. | Resistance levels: 140.80, 145.00.

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 2023