The USD/JPY pair continues strengthening, the American currency is supported by the mid-term trend.
On Thursday afternoon, the Japanese Yen continues retreating against the USD. the current quote for the instrument 112.51. there hasn’t been such strong ascending channel since last November.
Another meeting of the Bank of England was over today. The rate remained intact, at -0.1%; it has been negative for the last 18 months. It looks like the Japanese economy still requires the QE program, which was also left unchanged at ¥80T per year.
In the minutes after the meeting, the regulator said that Japan's economy is expanding moderately. The BoE is counting on the domestic demand increase and more activity from two sectors, which are still behind, agricultural and corporate. The inflation will continue moving towards the target of 2%. Among the risks for the Japanese economy the regulator mentioned negotiations on the United Kingdom's exit from the European Union, the US economy policy, and geopolitical complications.
Overall, the Bank of Japan told nothing specifically new, and no one really expected anything like that. The market is still analyzing the results of the Federal Reserve’s September meeting, which turned out to be even more interesting than expected. At the moment, the USD is on top, but it’s quite unclear whether it is a temporary phenomenon or a change of investors sentiment.
RoboForex Analytical Department