Japanese yen strengthens sharply ahead of BOJ’s Interest Rate Decision due Tomorrow, 20+ PIP Movement likely; June 17, 2021
BOJ’s (Bank of Japan) Interest Rate Decision
BOJ will release Policy Rate and Monetary Policy Statement tomorrow during early Asian hours. The time of the data release is not fixed. 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. In addition, Monetary Policy Statement is is among the primary tools the BOJ uses to communicate with investors about monetary policy. It contains the outcome of their decision on asset purchases and commentary about the economic conditions that influenced their decision. Most importantly, it projects the economic outlook and offers clues on the outcome of future votes.
Let’s see how JPY has reacted during the previous data release:
- The Japanese yen recovers noticeably from previous losses and hovers around 110.40 mark.
- The pair made intraday high at 110.82 and low at 110.35 mark.
- A day as well as H1 chart with triple EMA confirms the bullish trend for the time being. Current downside movement is short term trend correction only.
- A sustained close above 110.77 on H1 chart requires for the upside rally. Alternatively, a consistent close below 110.32 on H1 will check further key supports.
Take a look and do trade wisely!