USD/JPY slumps +200 pips to sub-135.00s despite Bank of Japan inaction – by anilpanchal7 USDJPY BOJ RiskAppetite YieldCurve CentralBanks
Bank of Japan keeps monetary policy unchanged, as expected.Chatters over Japan’s more bond issuance, cap on yields highlight BOJ Governor Kuroda’s speech.
USD/JPY stands on slippery grounds near 134.80, losing nearly 200-pips on the Bank of Japan’s inaction during early Tuesday. That said, the BOJ held its benchmark rate unchanged at -0.10% while keeping the short-term interest rate target at -0.1% while directing 10-year Japanese Government Bond yields toward zero. In doing so, the Japanese central bank matched the market expectations.Earlier in the day, talks of Japan’s heavy budget proposal triggered the talks of more bond issuance and yield caps.
Elsewhere, market sentiment remains dicey amid hawkish central bank moves and recession fears. Even so, China’s readiness for more stimulus and an effort to improve trade ties with other nations, recently with Australia, seem to underpin cautious optimism. Alternatively, the World Bank’s recent pessimism surrounding China and hopes of more rate hikes from the global central banks challenge the risk-on mood.
While portraying the mood, S&P 500 Futures print mild gains despite the downbeat closing of Wall Street. That said, the benchmark 10-year US bond yields rose 1.5 basis points to 3.60% whereas the two-year counterpart rises to 4.26% by the press time, which in turn portrays the yield curve inversion and suggests the market’s rush for risk safety.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/JPY struggles below 136.00 mark, flirts with the critical 200-day SMAThe USD/JPY pair struggles to capitalize on its modest intraday uptick and attracts some sellers near the 136.60 region on Monday. The pair retreats t
Read more »
NASA says coldest place to spend holidays will see temperature of minus 135 degreesThe coldest place on Earth to celebrate the holiday season will have plenty of snow and blue skies — and a temperature of minus 135 degrees Fahrenheit.
Read more »
Pairs in Focus This Week-EUR/USD, USD/JPY, AUD/USD, GBP/USDGet the Forex Forecast using fundamentals, sentiment, and technical position analyses for major pairs for the week of December 18th, 2022 here.
Read more »
USD/JPY Price Analysis: Bears in control below trendline resistanceUSD/JPY's M-formation on the 4-hour chart is compelling. While below the trendline resistance, the bias is firmly weighed to the downside. The specul
Read more »
USD/JPY Price Analysis: Could be coiling ahead of a significant breakoutUSD/JPY is in a state of consolidation, coiling below the breakout of the daily trendline support of the prior bullish cycle. The following illustrate
Read more »
When is the BOJ rate decision and how could it affect USD/JPY?Early on Tuesday, around 03:00 AM GMT, the Bank of Japan (BOJ) will announce routine monetary policy meeting decisions taken after a two-day brainstor
Read more »