19 Jun 2015
BoJ is the main event tonight, watch price of Yen
FXStreet (Guatemala) - Today we have the BoJ announcement and that is the major event to close the week down in Asia.
There is more hype than usual around the meeting, not because markets are anticipating a change in policy, but more so around the value of the Yen. In days that have gone by, last week in fact, the governor of the Central Bank expressed his beliefs that the Yen was oversold and didn't believe that there was further immediate downside to the price. This was enough to send the market in the Yen in to a tail spin, and USD/JPY crashed by 1.4% simply on his notion that it would not weaken much further than the dollar and that is was already "very weak". The price in the Yen has been unable to recover since. Kuroda made his remarks which rescued it from a 13 year low.
So, the press conference, when the BoJ is good and ready to deliver their conclusions of their two day meting today, will be of great interest in respect to the value of the Yen and we await clarification of some of the policy makers concerns that an excessively weak yen could raise import prices too quickly or become a source of trade friction. The announcements usual come between 0230 and 0330 GMT.
There is more hype than usual around the meeting, not because markets are anticipating a change in policy, but more so around the value of the Yen. In days that have gone by, last week in fact, the governor of the Central Bank expressed his beliefs that the Yen was oversold and didn't believe that there was further immediate downside to the price. This was enough to send the market in the Yen in to a tail spin, and USD/JPY crashed by 1.4% simply on his notion that it would not weaken much further than the dollar and that is was already "very weak". The price in the Yen has been unable to recover since. Kuroda made his remarks which rescued it from a 13 year low.
So, the press conference, when the BoJ is good and ready to deliver their conclusions of their two day meting today, will be of great interest in respect to the value of the Yen and we await clarification of some of the policy makers concerns that an excessively weak yen could raise import prices too quickly or become a source of trade friction. The announcements usual come between 0230 and 0330 GMT.