USD / JPY
Yesterday, the American stock market slightly corrected after the collapse on Tuesday which shows an increase of 0.25% and supported by the Japanese that could add 62 points. The activity index in all sectors of the economy (All Industries Activity) in March showed an increase of 0.4% against the forecast of 0.6% and -1.1% in February, but overall optimism appears strong prior the Bank of Japan meeting on Friday. According to investors' expectations, the commitment of the Central Bank to achieve the target inflation rate of 2.0% will be confirmed. But this morning, Japan's Interior Minister Seiko Noda said that the Bank of Japan should disregard this irrational desire to increase inflation through the massive redemption of assets. Alternatively, another option is to reduce the target level of inflation. This was said for a long time, even inside the BoJ, but dissident moods in their time were suppressed. Perhaps, there comes a second wave of discontent with such reckless policies. It seems so dramatically, even if the government decided to fundamentally revise the current policy, there will not be a turnaround. Markets need to be prepared the announcement at the next meeting of the Central Bank. Meanwhile, we are expecting for the continued growth of the USD/JPY currency pair against the overall background of the dollar strengthening and the growth of stock indices. Nikkei225 gain 0.55% today. The target for the yen is 110.30, then the range is 110.85-111.10.
* The presented market analysis is informative and does not constitute a guide to the transaction.
