Will BoJ support Yen with a rate hike today?
Macro theme:
- On Wednesday, the BoJ announced an interest rate increase and a bond tapering plan, reflecting confidence in the domestic economy's recovery and concern over the weakened yen.
- The BOJ raised the uncollateralized overnight call rate to 0.25%, marking the second rate rise this year after the Mar 19 increase, which ended negative interest rates, equity purchases, and yield curve controls.
Technical theme:
- USDJPY shifted its structure downward after breaking its support at 151.90. The price is trading below both EMAs, which is about to have a dead-cross signal, indicating that bearish momentum persists.
- If USDJPY cannot sustain above 151.90, it may extend its loss to 150.80 and 146.50.
- On the contrary, if USDJPY finds support at 151.90, the price may perform range trading within 151.90-155.80 till an apparent breakout occurs.
- On Wednesday, the BoJ announced an interest rate increase and a bond tapering plan, reflecting confidence in the domestic economy's recovery and concern over the weakened yen.
- The BOJ raised the uncollateralized overnight call rate to 0.25%, marking the second rate rise this year after the Mar 19 increase, which ended negative interest rates, equity purchases, and yield curve controls.
Technical theme:
- USDJPY shifted its structure downward after breaking its support at 151.90. The price is trading below both EMAs, which is about to have a dead-cross signal, indicating that bearish momentum persists.
- If USDJPY cannot sustain above 151.90, it may extend its loss to 150.80 and 146.50.
- On the contrary, if USDJPY finds support at 151.90, the price may perform range trading within 151.90-155.80 till an apparent breakout occurs.
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I’ve taken a break from my public community engagements to focus on raising my three kids, but I'm rediscovering my passion for working again. Stay connected, as I plan to return and rejoin my old communities with a lot of new skills one day soon.
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