How Did BoJ Policy Meeting Impact USDJPY?

How Did BoJ Policy Meeting Impact USDJPY? As the two-day policy meeting concludes today, this report summarizes findings from analysts on the outlook of the economy and interest rates from the meeting as it affects the JPY. Read on!

23 January, GKFX – The Bank of Japan’s (BoJ) two-day policy meeting concludes today and the announcement is due at 04:00 GMT. The central bank will also release its quarterly economic report.  The press conference from Bank of Japan Governor Kuroda is scheduled for 06:30 GMT.

The central bank is expected to keep rates and yield curve control target unchanged. Also, the BOJ is likely to revise its growth forecast higher and say the downside risks to the inflation outlook have diminished. Meanwhile, Kuroda is likely to stress that ultra-easy monetary policy is here to stay for some time.

How Did BoJ Policy Meeting Impact USDJPY?

James Chen from says, “any indication of future stimulus reduction or an otherwise more hawkish Bank of Japan could result in another boost for the yen.”

That said, the odds are low that BOJ would signal the beginning of policy normalization. Analysts at Nomura believe the Yen appreciation since purchase operation tapering symbolizes difficulty of normalization.

So, Kuroda is more likely to stress that the current policy regime is likely to be with us for some time. In such a scenario, the Japanese Yen may suffer moderate losses.

BOJ Preview: Kuroda may find it hard to taper the taper talk

BOJ to push back against premature tightening expectations – BBH

About the BoJ Decision

BoJ Interest Rate Decision is announced by the Bank of Japan. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and raises the interest rates it is positive, or bullish, for the JPY. Likewise, if the BoJ has a dovish view on the Japanese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.


This article How Did BoJ Policy Meeting Impact USDJPY? was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

    Share Your Opinion, Write a Comment