Global investors that earlier this week bet on Japan’s monetary tightening might have to eat their words: Bank of Japan (BOJ) has committed to continued monetary stimulus while aiming to ameliorate the side effects on banks’ margins.
BOJ governor Haruhiko Kuroda announced on Tuesday that he is focused on “continuous powerful monetary easing”, with tweaks only to relive commercial banks from tailwinds of a negative interest rate. The -0.1% interest rate will now apply to fewer reserves than before.
As for 10-year bonds, the BOJ maintains the target 0% rate but allows the yield to fluctuate to as much as 0.2%.
BOJ’s total purchases of exchange-traded funds remain at 6 trillion yen ($54 billion) per year, but the central bank has hinted that it might slow down its buying of risk assets. But those linked to the Topix will increase to 4.2 trillion yen, from 2.7 trillion yen.
BOJ commits to maintain extremely low levels of short- and long-term interest rates for an "extended period of time".
The central bank's decision to continue with easy monetary policy comes amidst a lowering of its inflation projections. From 1.3%, its estimate of core consumer price growth is down to 1.1% for the current fiscal year through March. The estimate for fiscal 2019 has been revised downwards to 1.5 % (from the previous estimate of 1.8%), while fiscal 2020's was lowered to 1.6 % (compared to an earlier estimate of 1.8%).
JPYUSD saw its Momentum Indicator move below the 0 level on April 01, 2024. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 123 similar instances where the indicator turned negative. In of the 123 cases, the stock moved further down in the following days. The odds of a decline are at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where JPYUSD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
JPYUSD broke above its upper Bollinger Band on May 01, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for JPYUSD entered a downward trend on May 02, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where JPYUSD's RSI Indicator exited the oversold zone, of 37 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 90 cases where JPYUSD's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for JPYUSD just turned positive on May 01, 2024. Looking at past instances where JPYUSD's MACD turned positive, the stock continued to rise in of 97 cases over the following month. The odds of a continued upward trend are .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows