The focus today is on central banks; more on their talk rather than action. Overnight there was little surprise to see that the Bank of Japan stuck to their current policy path after the latest meeting, but there is a growing consensus that they will be prompted to do more by mid-year as the inflation dynamics start working against them (pushing downwards on annual inflation). USDJPY was initially lower on the news and is currently fighting with the 101.20/23 area of which we spoke at the start of the week. The Nikkei is also close to the key 14,000 level, which has offered key support for most of the year to date. A break lower here and below 101.20 on USDJPY could well set us up for further yen strength, which naturally would not be a welcome development for the authorities. For today, note that minutes from both the Bank of England and Federal Reserve will be a focus for markets. In the UK, the debate is multi-faceted, given that there is a strong focus on the housing. Both the chancellor and prime minister were talking about this yesterday and making clear Bank has the tools to act, via the financial policy committee who have the power to enact certain measures and offer clearer guidance than was the case for the Bank in the pre-crisis era. It may be too early to expect the MPC minutes today to start offering signs of broader dissent, but we are probably not that far off a time when we are likely to see more pronounced splits in thinking. What is troubling central bankers is that volatility in many asset markets (FX included) is at multi-year lows and the feeling is that markets are too complacent regarding the potential risks ahead. But central banks have been a part of this, in offering explicit forward guidance so as not to spook markets into fearing a set back from the low interest rate environment. At some point, markets will have to start pricing in this wall of worry and it may not be such a bad thing. Further reading: Possible Head & Shoulders To Take The Dollar Lower USDCAD: Builds On Recovery Strength FxPro - Forex Broker FxPro - Forex Broker Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss. View All Post By FxPro - Forex Broker Daily Look share Read Next EUR/USD May 21- Rangebound Ahead of Fed Minutes Kenny Fisher 8 years The focus today is on central banks; more on their talk rather than action. Overnight there was little surprise to see that the Bank of Japan stuck to their current policy path after the latest meeting, but there is a growing consensus that they will be prompted to do more by mid-year as the inflation dynamics start working against them (pushing downwards on annual inflation). USDJPY was initially lower on the news and is currently fighting with the 101.20/23 area of which we spoke at the start of the week. The Nikkei is also close to the key 14,000… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.