USD/JPY as BOJ rate decision approaches The US federal Reserve is not the only major central bank making an interest rate decision this week. So too, will the nonconformist Bank of Japan (BOJ).
In its April policy meeting, the BOJ highlighted upside risks to inflation and indicated readiness to adjust monetary policy, if necessary, although it expects to maintain its current policy for the time being.
The BOJ stated that if the outlook for economic activity and price rises materializes, interest rate hikes could be warranted. Key economic reports from Japan prior to this week's interest rate decision include:
Japan GDP Growth Rate (final)
Japan Economy Watchers Survey Outlook
Japan Producer Price Inflation
For the exact date and time of these major economic events, import the BlackBull Markets Economic Calendar to receive alerts directly in your email inbox.
From the daily chart, the USD/JPY perhaps appears slightly bullish. The pair has climbed above the Ichimoku Cloud, indicating strong buyer momentum.
On Tuesday last week, BOJ Deputy Governor Ryozo Himino expressed concerns about the negative impact of a weak yen on the economy. His comments suggest that the BOJ might be preparing for another intervention in the forex markets to support the yen, which would be negative for the USD/JPY pair.
The 14-day RSI has recently pulled back, avoiding overbought conditions.
