USDJPY. Japan’s Inflation Report (28 July 23:30 GMT)

In recent days the USD/JPY pair has been increasingly volatile, possibly due to the upcoming Bank of Japan meeting this week. Many believe the agenda will include the discussion of additional measures of economic stimulation. Experts believe that such a programme could cost Japan 10-20 trillion Yen.

It’s quite possible that the final decision will hang on the inflation figures due to be published this week.

If those don’t live up to the expectations, the value of Japan’s national currency could suffer.

USDJPY chart:

After the rate broke the psychological level = 100 representatives of Bank of Japan started verbal money interventions (on a regular basis they mentioned that yet another QE program is about to start) and Japanese Yen started to lose positions after that. According to the indicator of technical analysis “CCI” there a short correction is possible on USDJPY D1 chart, but after the meeting of representatives of Bank of Japan or US Fed Reserve situation might change very quickly.