Article By RoboForex.com
On Thursday afternoon, the USD/JPY pair is rising a bit. However, the instrument has already been trading inside a certain range for three weeks and isn’t going to leave it in the nearest future.
The Japanese Yen is slowly retreating in the pair with the USD. The current quote for the instrument is 103.73. The short-term trading range is between 102.73 and 104.61.
The Japanese media today is actively discussing the publication relating to the possible results of another meeting of the CB, which will be held on October 31st and November 1st. The forecasts assumes that the Japanese regulator will have to decrease the interest rates, which are already negative, up to -0.3%. In this case, according to the interviewed economists, the BoJ will have a space for maneuver if the external background gets more complicated.
On the one hand, a possibility of such decision really exists in the light of the presidential elections in the USA, which are covered by intrigues, and December meeting of the USA Fed with a possible rate increase.
On the other hand, making the interest rates even more negative will be additional “burden” for the country’s financial system along with the Central Bank. Are banks ready for it? It’s an open question.
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Of course, the CB will rely on the news, statistics, and circumstances, but the difficulty is that the oncoming meeting will barely result in some important decisions. It appears that the regulator either has to make preventive steps and “put a fiscal strain on” without knowing whether it will be necessary or nor, or wait for the news.
RoboForex Analytical Department
Article By RoboForex.com
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
