BoJ is set to maintain ultra-low interest rates | 27 Abril 2022

27 Abril 2022, USD/JPY

USDJPY trading plan:

The Bank of Japan is set to maintain ultra-low interest rates and hold off from major tweaks to its dovish policy guidance, as rising raw material costs force it to focus on underpinning a fragile economic recovery. The BOJ's stubborn commitment to its zero-rate programme puts it at odds with major central banks that are shifting toward tighter monetary policy, although inflation in Japan is expected to creep up towards the central bank's 2% target. Prospects of aggressive Fed tightening, which would widen the divergence between U.S. and Japanese interest rates. "The output gap in Japan is negative, and there is still a long way to go to achieve the 2% target in a stable manner," BOJ Governor Haruhiko Kuroda said.

Investment idea: buy 127.40 and take profit 128.19.

David Johnson
Analyst of «FreshForex» company
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