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The BOJ is up this week!

Are you planning on trading the major yen crosses?

Markets aren’t expecting changes from Kuroda and his gang but check out the points you need to watch out for during the release!

Yoshihide Suga…me on?

  • Japan’s ruling party LDP is expected to choose Chief Cabinet Secretary Yoshihide Suga to succeed Shinzo Abe as the country’s next Prime Minister on Monday
  • Suga is widely considered to be Abe’s right-hand man, which is good for the continuity of policies for the world’s third-largest economy

BOJ’s policy announcement (Sept 17, Asian session)

  • As expected, the Bank of Japan (BOJ) kept its policies steady in July
  • BOJ downgraded its growth forecasts to -4.5% – -4.7% in 2020, worse than the 3.0% – 5.0% contraction that it had seen in April
  • The dovish remarks were overshadowed by news that Japan raised its alert for the coronavirus pandemic to the highest level, which drove traders to the safe-haven yen

Lower-tier reports

  • Trade balance data (Sept 15, 11:50 pm GMT) to show a 50B JPY trade deficit as both exports and imports take hits
  • National core CPI (Sept 17, 11:30 pm GMT) seen dipping by 0.3% (from 0.0%) in August

Market risk sentiment

  • The Fed will be printing its revised projections on Wednesday and affect USD/JPY and maybe the rest of the yen crosses
  • Pandemic-related headlines ill continue to influence the safe-haven yen’s price action this week
  • Closely watched lower-tier releases can also set the overall market risk appetite and affect JPY’s intraweek trends

Technical snapshot

  • Stochastic considers the yen “overbought” against the pound
  • The rest of the major yen pairs are in neutral territory on the daily time frame
JPY Forex Pairs Stochastic from MarketMilk
JPY Forex Pairs Stochastic from MarketMilk
  • EMAs show the yen’s short and long-term bullish trends against the pound and the dollar
  • The yen remains bearish against the rest of the major currencies
JPY Forex Pairs EMAs from MarketMilk
JPY Forex Pairs EMAs from MarketMilk
  • The yen saw the most volatility against the pound and the comdolls in the last seven days
JPY Forex Pairs Volatility from MarketMilk
JPY Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read JPY’s price recap for September 7 – 11!