JPY Currency Analysis

Currency Sentiment - Bearish 

 

The Bank of Japan has promised to stick to its powerful quantitative easing stimulus program to tackle low inflation and growth in Japan. The BoJ says it will stick to pumping 80trillion YEN into japan's economy in an attempt to lift inflation towards their 2% target. 

 

The safe haven YEN has been in high demand of late as risk-off currency flows into Japanese Government Bonds continues to temporarily support the JPY whilst the US / China trade war heats up. With no interest rate hikes expected from the Bank of Japan until 2020 / 2021, investors have no fundamental long-term reason to buy the JPY in the forex market unless other currencies weaken based on their own domestic factors.

 

For more details please visit the Central Bank Monitor page for details on the Japanese economies.