The BOJ is up this week!
What are markets expecting from the event?
Check out the market themes that may affect the yen’s intraweek trends!
BOJ’s policy statement (Jul 15, Asian session)
- Bank of Japan (BOJ) expanded its stimulus program in June
- The lack of aggressiveness from the Fed in the U.S. session pushed JPY higher at the time
- The latest meeting minutes suggested BOJ members’ preference for a “wait and see” mode
- Analysts don’t see policy changes from Kuroda and his team this week
- We could see a bleaker outlook report and presser after the central bank downgraded its assessment of nine regional economies last week
Overall market sentiment
- The number of coronavirus cases, the major economies’ responses, and prospects of economies reopening will still influence demand for safe havens like the yen this week
- Policy decisions from BOC and ECB can also affect intraweek trends for the major currencies
- Major reports from the U.S. (PMIs, retail sales) and China (GDP, industrial production, retail sales) will also factor in the yen’s price action and overall market sentiment
- Stochastic considers the yen “oversold” against the pound and Kiwi on the daily time frame
- JPY is also flirting with oversold conditions against the AUD and CHF
- The yen is still on short and long-term bullish trends against the dollar
- We’re starting to see short-term retracements on AUD/JPY, NZD/JPY, EUR/JPY, and CHF/JPY
- JPY continues to trade above the 200 SMA even as it drops below the 50, 20, and 5 SMAs against GBP
- The yen was most volatile against the comdolls and the pound in the last seven days