Fed Tapering Continues: If you expected a snoozer from today’s FOMC monetary statement, you got it. The Federal Reserve Bank plans to maintain its current pace of tapering, reducing QE by $10 billion for the 4th straight month, while keeping the federal funds rate under 0.25%. The market seems understanding to the harsh weather, but if data does not turn up in the Spring, the fed will have to address the weak economic recovery with more than just a blame on weather condition, which will push back any projections of a rate hike in 2015…

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Bank of Japan Governor Haruhiko Kuroda said consumer inflation may exceed the central bank’s projection in the fiscal year that ended in March, voicing confidence the world’s third-largest economy continues to make headway in meeting its price target. Deputy Governor Hiroshi Nakaso added to the optimism, stressing that Japan can withstand the pain from a […]

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USD/JPY is bid on another fall in trade data in the overnight session. Japan’s bigger-than-expected rise in its March trade deficit ($14b deficit)– imports surge and exports remain subdued — has encouraged investors to sell the yen. It seems that some are happy to treat the latest disappointment in the Japanese trade balance as reason […]

The post USD/JPY – Big Week for Japan appeared first on MarketPulse.

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1. Fed is tapering and BoJ is easing. Thsi central bank divergence in policy gives USD/JPY a bullish bias from the fundamental perspective.
2. USD/JPY has been on an uptrend as seen in the weekly chart for at least the past 1 1/2 year, coming off a historic low.
3. USD/JPY broke above its 2013 triangle at the end of October, signaling a bullish continuation with a strong breakout swing…

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No surprises on a lazy Friday. In today’s Monetary Policy announcement, Bank of Japan opted to keep current pace of easing – by expanding monetary base by 60 – 70 Trillion Yen each year. This is a huge disappointment for traders and speculators alike who were hoping for a show of strength by BOJ to restore market confidence following the hike in Sales Tax earlier this week. Instead, BOJ’s statement was filled with the usual dross – moderate economic recovery…

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