The USD/JPY pair has temporarily halted its downward trend in anticipation of the Bank of Japan meeting.
The Japanese yen, in tandem with the US dollar, has momentarily ceased its decline, with the current USD/JPY exchange rate at 148.04.
Uncertainty looms in the market as investors approach Tuesday’s Bank of Japan meeting. While it is clear that the interest rate will remain negative due to ongoing inflation assessments, there is speculation about potentially optimistic comments from BoJ regarding the achievement of inflation targets, providing support for the JPY.
No significant decisions are expected in January. The recent earthquake in Japan requires financial efforts for recovery, and the mild December comments from Kazuo Ueda, the Bank of Japan’s governor, suggest that tightening monetary conditions might not be imminent.
However, the likelihood of the Bank of Japan ending the negative interest rate is apparent, and the question now is when this shift will occur.
The chances of the BoJ revising its position are increasingly pointing toward April.
The post JPY Sell-Off Pauses Ahead of Bank of Japan Meeting: Overview for January 22, 2024 appeared first at R Blog – RoboForex.