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Japanese yen lower over Dovish BoJ



USDJPY Price, News and Technical Analysis

  • BoJ remain resilient and lower inflation expectations
  • The outbreak of USDJPY could reach a new high by 2018

The DailyFX Q3 forecasts are

Bank of Japan remains dovish, lowers inflation forecasts

Bank of Japan governor Haruhiko Kuroda introduced forward guidance at today's MPC meeting to help the central bank's policy framework be more flexible to maintain and reach the inflation target. Governor Kuroda said the central bank will keep interest rates low for a longer period of time to boost price growth. Kuroda also lowered inflation forecasts for the full year 201

8 to 1.1% from 1.3%, 2019 to 1.5% from 1.8% and 2020 to 1.6% from 1.8%.

With Japanese yen appreciation now limited by extended BoJ reserve, USDJPY should continue to rise, particularly if Fed Chairman Jerome Powell made an optimistic update on the state of the US at the FOMC meeting Wednesday. Economy. It is not expected that the Fed will rise again tomorrow, but it is expected that interest rates at the September meeting will be raised by 0.25% for a third time and expectations for a fourth increase at the December meeting are high , This widening interest rate differential will continue to drive the USDJPY up and be the only brake to be seen during risk-taking investor sentiment.

Fibonacci support at 110.880 is expected to hold in the short term, allowing the pair to run high on May 21 at 11.390 and the 20-day moving average at 111.672 before finding a gap until the high of July 19th at 113.178 opens. The IGI Client Sentiment Indicator shows the retail trade 62% of USD

USDJPY daily price chart (December 2017 – July 31, 2018)

  USD / JPY analysis: Japanese yen lower on Dovish BoJ [19659016] If you are new territory, </span><span> or if you want to update your knowledge base, download </span><span class= New to FX Guide and Traits of Successful Traders to help you on your journey ,

What do you think of USDJPY? Tell us what you think by using the comments section at the bottom of this article, or contact n contact the author by email at Nicholas.Cawley @ig. com or via Twitter @nickcawley1 [19659011] — Posted by Nick Cawley Analyst


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