BOJ's Decision Crushes Market Speculation
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's Stochastic Oscillator stays in overbought zone for 4 days
The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Technical Analysis (Indicators)
Bearish Trend Analysis
JPYUSD broke above its upper Bollinger Band on July 13, 2026. 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.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where JPYUSD's RSI Indicator exited the oversold zone, of 57 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on July 13, 2026. You may want to consider a long position or call options on JPYUSD as a result. In of 128 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for JPYUSD just turned positive on July 10, 2026. Looking at past instances where JPYUSD's MACD turned positive, the stock continued to rise in of 106 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where JPYUSD advanced for three days, in of 208 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 156 cases where JPYUSD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
