DailyFX.com -

Talking Points:

  • Bank of Japan Keeps Monetary Base Target Unchanged at ¥270 Trillion
  • BOJ: Moderate Recovery Seen Despite Tax Hike, Inflation Stable at 1.25%
  • Yen Little-Changed as BOJ Announcement Holds No Surprises For Traders

The Japanese Yen remained relatively unchanged against its major global counterparts as the Bank of Japan delivered in its monetary policy announcement. The bank maintained its monetary base target at ¥270 trillion and stuck with its pledge to increase it by ¥60 to ¥70 trillion each year, as expected.Officials stated their expectations of a moderate recovery in the economy despite this year’s sales tax hike and saw the inflation rate stable around 1.25 percent for the time being.

The Yen’s limited response to the policy announcement likely reflected the outcome’s alignment with priced-in expectations, meaning it offered no meaningful impetus for traders to readjust their positions. Currency Analyst David Song argued in his weekly Yen forecast that the BOJ’s apparent confidence in being able to reach its objectives with the current policy mix as-is meant Governor Kuroda and company were unlikely to deliver anything materially different from the status quo this time around.

Japanese Yen Ignores Status-Quo Bank of Japan Policy Announcement

USD/JPY [15 mins - 08/08/2014] Chart created using FXCM Marketscope.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Investing

    USD/JPY: August 2015 Forecast

  2. Forex News

    Heavy Event Risk in Jobs Data, Rate Decision Will Confront Summer Trading

  3. Forex News

    US Dollar as ‘Data Dependent’ as the Fed as NFPs Approach

  4. Forex News

    Japanese Yen: Up or Down? Next Week Holds the Keys

  5. Forex News

    USD/JPY rebounds back toward 124.00, unchanged for the week

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!