USDJPY. Bank of Japan Monetary Policy Meeting (2 August 23:50 GMT)

Last week at the Bank of Japan meeting, against all expectations, the members resolved to keep the refinancing rate unchanged, while most experts were betting on a cut. At the same time the asset buy-back program was increased by 3 trillion yen, while the monthly volume was restricted to 80 trillion yen.

Now we’ll have an opportunity to understand why those decisions were made as the minutes of BoJ’s monetary policy meeting will provide a clear explanation.

Key Japanese economic data:

..it was decided to keep the refinance rate unchanged on -0.10% level, while both CPI and Retail Sales (have a massive impact on Consumer Price Index) increase smoothly. Also, the level of industrial production is increasing, while the level of unemployment is decreasing.

USDJPY chart:

According to the indicator of technical analysis “Parabolic SAR” the downward trend has just started, but according to ADX trend is slowing down, but the downward rate movement is still dominating.