After the U.S. FOMC and BoJ Meeting, USD/JPY Surges into the 144 Range! Focus on BoJ Governor Ueda’s Press Conference
This week, following the U.S. FOMC and the BoE’s MPC, the Bank of Japan (BoJ) also held its monetary policy meeting. Today’s announcement confirmed that the BoJ’s policy rate remains unchanged, which led to fluctuations in USD/JPY, dipping briefly below 142 before rapidly rising back into the 144 range.
The market is now focused on Governor Ueda’s press conference scheduled for 3:30 PM. During this meeting, the BoJ adjusted its assessment of personal consumption to indicate a “gradual upward trend,” suggesting economic recovery. However, the continued rapid appreciation of the yen has raised concerns about inflation control and instability in the stock market.
In Governor Ueda’s press conference, the focus will be on his stance regarding the normalization of monetary policy and the flexibility the BoJ may have in response to the sharp yen appreciation and its impact on the stock market. Depending on the comments made during the conference, further movements in USD/JPY are anticipated, with attention on the possibility of a continued depreciation of the yen.
Key Events Today:
While there are no major U.S. economic indicators scheduled for release today, various economic data from Europe and Canada will be announced. Additionally, the discussion between ECB President Lagarde and the IMF Managing Director, along with a speech from the Philadelphia Fed President, are also points of interest.
Strategy:
With USD/JPY now in the 144 range, market reactions following Governor Ueda’s press conference are crucial. If expectations for rate hikes diminish, the trend of yen depreciation may continue. Today, I plan to maintain a bearish outlook on the yen in my trading strategy.
