Japanese Yen Continues Rise after Unchanged BOJ Announcement

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Talking Points:

• Bank of Japan Keeps Annual Monetary Base Growth Rate at ¥80T as Expected
• Yen higher After BOJ Announcement But Price-in Policy Show Outlook Static
• Have Economic ReleasesDirectly on Your Charts with theDailyFX News App

The Bank of Japan kept monetary policy unchanged by maintaining the annual pace of increase in the monetary base at ¥80 trillion, meeting economists’ expectations. Officials voted 8-1 to keep policy as is. The central bank sees long term inflation expectations rising and sees the economy recovering in the long term. The BOJ sees FY2015 core CPI at 1.0% and has stated that QQE will continue until a 2 percent inflation is achieved.

The Japanese Yen continued its rise against major currencies after the status quo announcement crossed the wires. The move mirrored a rise in Japan’s ten year bond yields, a proxy for monetary policy. Priced-expectations indicate that currently the market isn’t expecting the Bank of Japan to alter course on stimulus for the foreseeable future. The BOJ governor, Haruhiko Kuroda, will hold a briefing about the BOJ policy statement at 06:30 GMT today. Stay tuned to the DailyFX Real-time News Feed.

USD/JPY – 5min Chart – Created Using FXCM Marketscope