BOJ Remains Dovish, USD/JPY Bounces Up!
<p> The Yen currency depreciated significantly in the Asian session just now as the decision of the last policy meeting of the central bank of Japan for 2023 has been answered.</p><p><br /></p><p>Like other central banks last week, the Bank of Japan (BOJ) also kept its interest rate unchanged at -0.10% and the 10-year Japanese government bond yield remained at 0%.</p><p><br /></p><p>The outlook for monetary policy that remains dovish has given the yen an early reaction to the weakening of the yen as markets await a speech by governor Kazuo Ueda for the latest guidance.</p><p><br /></p><p>A Reuters poll found that 80% of economists expect the BOJ to say 'goodbye' to its loose monetary policy by the end of 2024, with a minority expecting that situation to happen as early as January.</p><p><br /></p><p>Observing the price reaction on the chart of the USD/JPY currency pair, the price has shown a surge following the ongoing BOJ meeting which saw the price climb up to the 143,700 level.</p><p><br /></p><p>If judged, the price is likely to continue the bullish pattern after signaling a change in direction earlier on Monday yesterday with the price movement already above the Moving Average 50 (MA50) support line on the 1-hour time frame of the chart.</p><p><br /></p><p>At the beginning of the Asian session this morning, the price also tested the MA50 support before the surge was finally shown.</p><p><br /></p><p><br /></p><p>The price increase if continued is seen to return to the concentration zone between the range of 146.00 to 147.00.</p><p><br /></p><p>The move higher is projecting a more clear bullish trend move for the price to end the bearish streak after 5 consecutive weeks.</p><p><br /></p><p>However, if the increase that occurred at the beginning of this week is just a price retracement, the decline can happen again if there are signs of a weak price increase.</p><p><br /></p><p>The decline will test the level reached last week around 141.00 before extending lower at the target around 139.300.</p>
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