The statement of the Bank of Japan supported the decision to increase the monetary base by 60-70 trillion yen. In addition, the lending program was increased to $ 7 trillion. yen, in order to support the economy. As a result, we have seen the conservation of monetary policy objectives - an increase of the monetary base and growth of inflation to 2%.
On this background, the quotes of USD/JPY have reached the resistance level 102.70, but could not overcome it. In case of fixing above this level, we expect a growth to 103.40 and then to 104.00. Reduction is limited by the support at 101.50. Considering soft monetary policy of the Bank of Japan, we keep a long-term positive outlook for the USD/JPY.
Wish you the profits!
FXFINPRO Capital Analytical department.