Be Cautious as Japanese Yen rises ahead of BoJ’s Policy Rate Decision; Oct 28, 2020
Bank of Japan’s Policy Rate
Bank of Japan will publish interest rate decision on Oct 29, 2020 and releasing time will remain uncertain for the event (usually releases around 0300 GMT/0830 IST). Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future. Markets expect BoJ to keep interest rate unchanged but Central bank may cut the growth forecasts for the current year. The direction of the Japanese yen only depends on the Monetary policy statement and press conference as showing any major changes or not.
Let’s see how JPY has reacted during the previous data release:
USD/JPY: The Japanese yen strengthens sharply on Wednesday and touches 104.11 mark. A sustained close above 104.83 will take the parity higher towards key resistance around 104.92, 105.20, 105.94, 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 104.41 will drag the parity down towards 103.97, 103.50, 102.98 and 102.40 marks respectively.
Take a look and do trade wisely!