USDJPY - the Bank of Japan announced the continuation of the redemption of bonds
The changes will not affect the interest rate, which is expected to be kept at a negative level of –0.10%, but, according to the decision of the officials, the rules for the redemption of government bonds will be adjusted. Purchases of securities will continue with no volume cap, and transactions in bonds with a fixed rate of 0.25% will now take place every business day. The bank also intends to acquire shares of exchange-traded funds (ETFs) and real estate trusts worth about 12 trillion yen and 180 billion yen, respectively. In addition, corporate bond buybacks worth up to 3 trillion yen will continue. Thus, one can say with confidence that the high volatility in USD/JPY will increase, and against the backdrop of a declining US dollar, the yen has high chances for a correction.
The trading instrument is trading in the global uptrend, below the annual high of 139.00. Technical indicators are holding a buy signal, which started to weaken: the fluctuation range of the Alligator indicator EMAs is slightly narrowing and the histogram of the AO oscillator is forming new descending bars and approaching the transition level.
Support levels: 136.7, 134.2 | Resistance levels: 139, 141
The changes will not affect the interest rate, which is expected to be kept at a negative level of –0.10%, but, according to the decision of the officials, the rules for the redemption of government bonds will be adjusted. Purchases of securities will continue with no volume cap, and transactions in bonds with a fixed rate of 0.25% will now take place every business day. The bank also intends to acquire shares of exchange-traded funds (ETFs) and real estate trusts worth about 12 trillion yen and 180 billion yen, respectively. In addition, corporate bond buybacks worth up to 3 trillion yen will continue. Thus, one can say with confidence that the high volatility in USD/JPY will increase, and against the backdrop of a declining US dollar, the yen has high chances for a correction.
The trading instrument is trading in the global uptrend, below the annual high of 139.00. Technical indicators are holding a buy signal, which started to weaken: the fluctuation range of the Alligator indicator EMAs is slightly narrowing and the histogram of the AO oscillator is forming new descending bars and approaching the transition level.
Support levels: 136.7, 134.2 | Resistance levels: 139, 141