The BOJ is up this week! Will Governor Kuroda and his team keep policies unchanged as expected? More importantly, how will the yen react to the event?
Here’s a list of catalysts that might affect the yen’s intraweek trends!
BOJ’s policy statement (June 16, Asian session)
- Bank of Japan (BOJ) kept its interest rates steady, sets aside 75T JPY for another COVID loan program
- The extra stimulus, together with escalating U.S.-China tensions, boosted JPY higher during the day
- Analysts don’t see Governor Kuroda and his team changing major policies though they could expand their loan support programs
- Trade balance (June 16, 11:50 pm GMT) to show both imports and exports taking 23% to 28% dips?
- National core CPI (June 18, 11:30 pm GMT) might improve from -0.2% to -0.1% in May
- BOJ’s meeting minutes (June 18, 11:50 pm GMT) can give more details on the BOJ statement’s main points
Market risk appetite
- COVID-19 cases and their impact on economic recovery will continue to affect the yen’s intraweek trends
- Markets will look to the SNB, BOE, and Fed Governor Powell for stimulus trends that could help global economic recovery
- Top-tier releases like China’s data dump, Australia’s labor data, and U.S. retail sales can influence the demand for the safe haven yen
- Stochastic believes the yen “overbought” against the dollar on the daily time frame
- The yen is still on short and long term bullish trends against the dollar
- EMAs reflect JPY’s mainly bearish trends against the Aussie, Kiwi, euro, and franc
- Watch out for potential retracements or reversals on CAD/JPY and GBP/JPY
- The yen saw the most volatility against the comdolls and the pound in the last seven days
Missed last week’s price action? Read JPY’s price recap for June 8 – 12!