The Bank of Japan made no new policy decisions. This was expected after the huge QE announcement made earlier in the month, in Kuroda’s first decision.
However, the markets probably wanted an additional dose of QE or of big declarations. With no new fuel to weaken the yen, USD/JPY lost the 99 line and is getting further away from 100. Will the US GDP release push the pair higher?
The vote was unanimous, and the BOJ pledges to increase the monetary base at an annual base 60 to 70 trillion yen. Fresh figures from Japan showed that deflation is still strong: core CPI fell by 0.5% in March, contrary to expectations of -0.4%. Other CPI figures don’t look good either.
This is how USD/JPY looks on the charts: the pair was already pressured before the announcement, and extended its falls afterwards, reaching a low of 98.22 before rebounding to 98.70 at the time of writing.[do action=”tradingviews” pair=”USDJPY” interval=”60″/]
For more on the yen, see the USD/JPY forecast.