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Forex: USD/JPY dives lower after Bank of Japan monetary policy minutes release

FXstreet.com (Barcelona) - The USD/JPY is currently edging lower down 67 pips at 98.71. Initial reactions to the Bank of Japan monetary policy meeting are lower, after previous trading around 99.10 and now dropping as low as 99.69
According to analysts at FXStreet.com, "The Bank of Japan will conduct money market operations so that the monetary base will increase at an annual pace of about 60-70 trillion yen" the BoJ stated.

They analyst team at FXStreet.com went on say, “There was no mention to price guidance, which should be seen as a slight disappointment by the market as the central bank fails to commit to provide a timeframe, which may suggest lack of clarity on when the 2% inflation target may be achieved.”

The FXStreet.com Trend Index remains Strongly Bearish on the 1 hour chart, while the OB/OS Index reads neutral. Initial support comes in at 98.47 (hammer bottom support candle on 1 hour chart), followed by 97.87 (the 20dma). First resistance now comes in at 99.25 (the 9 dma on 1 hour chart), followed by 99.56 (previous day high price). In addition, The main focus will be keeping an eye on the upper (100.00) and lower (98.40) boundaries the recent five day trading range.

BoJ committed to double monetary base in 2 years

In an unprecedented short statement on Monetary Policy held today, the Policy Board of the Bank of Japan decided, by a unanimous vote, to set the following guideline for money market operations for the intermeeting period: "The Bank of Japan will conduct money market operations so that the monetary base will increase at an annual pace of about 60-70 trillion yen" the BoJ stated. Bank of Japan continues its pledge to double the monetary base in 2 years.
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