Bank Of Japan’s Policy Rate Decision

Japan Policy Rate Decision

Japan will release interest rate decision due tomorrow during early Asian hours. Generally, Interest rate decision captures high market volatility but during this event Japanese yen tends to trade in rigid boundaries against major peers. Market has anticipates flat interest rate but possibilities are there to introduce new measures by BOJ to boost the economy. In addition, political uncertainties are also responsible to decide the future path of the Japanese yen.

Let’s see how JPY has reacted during the previous data release:

July 15

June 16

Note: BOJ interest rate decision data may create around 10 – 30 PIP movement only.

Technical View:

USD/JPY: The Japanese yen strengthens noticeably against U.S. dollar ahead of BOJ’s policy rate decision. The pair hits fresh 2 – month low at 104.85 mark. A sustained close above 105.40 will take the parity higher towards key resistance around 105.90, 106.22, 106.92, 107.48, 107.92, 108.22, 108.54, 109.20 and 109.72 mark respectively. On the other side, a consistent close below 105.40 will drag the parity down towards 104.72, 104.20, 103.50 and 102.98 marks respectively.

Take a look and do trade wisely!

Good luck