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BoJ Rate Statement overview

Sometime around 03:00 GMT will be seeing another Monetary Statement and Rate Decision from the Bank of Japan (BoJ), to be followed by a press conference chaired by the BoJ’s head,  Haruhiko Kuroda. Little adjustment is expected with the BoJ firmly entrenched in their hyper-easy monetary policy, but added focus has appeared recently as central bank planners begin to bring extra focus onto the 10-year JGB yield curve, and traders will be paying close attention to Kuroda’s ensuing press conference to glean hints about adjustments the BoJ may be considering for the near future.

How could it affect the USD/JPY?

The US Dollar has seen an extension against the Yen heading into Wednesday’s action, and as noted by FXStreet’s own Valeria Bednarik, “in the 4 hours chart, the Momentum indicator heads north in overbought readings, while the RSI is flat at around 62, as the price bounced from a bullish 200 SMA multiple times in these last couple of sessions. The 100 SMA in the mentioned chart, maintains its bearish slope below the larger one. As long as bulls keep defending the 112.60 price zone, the pair is poised to extend its advance up to 113.40, September 8 daily high.”

Support levels: 112.60 112.35 111.95    

Resistance levels: 113.00 113.40 113.8

Key notes

USD/JPY analysis: near 113.00 and heading higher

USD/JPY Approaching Big Reversal

USDJPY Analysis: Breaks most technical indicators

About the BoJ Monetary Policy Statement

An official monetary policy statement is released by the Policy Board of the Bank of Japan. By communicating the committee ´s vote outcome regarding interest rates and other policy measures as well as the economic conditions influencing their decision, the statement gives clue to future changes in monetary policy.

About the BoJ Rate Decision

BoJ Interest Rate Decision is announced by the Bank of Japan. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the JPY. Likewise, if the BoJ has a dovish view on the Japanese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.