When is the BoJ's Monetary Policy Statement, and how could it affect the USD/JPY?
BoJ Monetary Policy Statement overview
Early Thursday sees the Bank of Japan's (BoJ) latest Interest Rate Decision at 02:00 GMT, and although the BoJ is expected to remain buried deep within their own hyper-easy policy programs, which leaves interest rate hikes almost entirely impossible, the central bank recently had to reduce their inflation and growth expectations for 2018, and the BoJ's post-rate call news conference and Monetary Policy Statement will be the closely-watched elements of the BoJ's showing for Thursday.
How could it affect the USD/JPY?
While the US Dollar is still getting bolstered against the Yen by the Fed's rate hike late Wednesday, USD/JPY is unlikely to see much reversal from the BoJ, and as FXStreet's own Valeria Bendarik noted, "the pair is currently trading around 112.40 with the latest bounce contained by sellers around 112.60, and the 4 hours chart indicates that the current recovery could be just corrective, as it continues developing well below its 100 and 200 SMA, as technical indicators barely bounced from oversold readings."
Support levels: 112.10 111.80 111.55
Resistance levels: 112.60 112.95 113.35
Key notes
USD/JPY analysis: holding at lower ground post-Fed
About the BoJ Monetary Policy Statement
An official monetary policy statement is released by the Policy Board of the Bank of Japan. By communicating the committee´s vote outcome regarding interest rates and other policy measures as well as the economic conditions influencing their decision, the statement gives clue to future changes in monetary policy.
About the BoJ Interest Rate Decision
BoJ Interest Rate Decision is announced by the Bank of Japan. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the JPY. Likewise, if the BoJ has a dovish view on the Japanese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.