The USDJPY currency pair is above the EMA200 and EMA50 in the 4H timeframe and is moving in its upward channel. In case of correction due to the release of economic data this week, we can see demand zone and buy within that range with appropriate risk reward. Breaking the downtrend line and the specified resistance range will pave the way for the currency pair to rise to the supply zone. We will sell currency pairs in that range.
Bank of Japan (BOJ) to Release Review of Monetary Policy Tools
According to Reuters, the Bank of Japan (BOJ) is set to release the findings of a comprehensive review next month, evaluating the advantages and drawbacks of various unconventional monetary policy tools employed over the past 25 years to combat deflation. This review is seen as a symbolic step towards ending BOJ’s era of massive stimulus measures.
The report will include findings and surveys that justify BOJ’s plan to gradually normalize its monetary policies. The review’s results are expected to be published after the final BOJ policy meeting of the year, scheduled for December 18–19, and may include a potential rate hike from the current level of 0.25%.
Japan’s ruling coalition, comprising the Liberal Democratic Party (LDP) and Komeito, has reached an agreement with the opposition Democratic Party for the People (DPP) on an economic stimulus package. The package includes cash handouts for low-income households, subsidies to assist with utility bill payments, and additional investments in artificial intelligence and semiconductors.
The three parties have agreed to raise the income tax threshold and continue discussions on reducing gasoline taxes. This agreement requires legislative revisions to be addressed during next year’s parliamentary session. Following the ruling coalition’s loss of its majority in the lower house, DPP’s support has become crucial for advancing the package. However, some economists have expressed skepticism about the package’s limited impact on boosting consumer spending.
BOJ Chief Kazuo Ueda’s Remarks:
Kazuo Ueda, the BOJ Governor, stressed the need for the government to monitor medium-term financial sustainability. He stated that the policies of the new U.S. administration will be closely examined and integrated into Japan’s economic outlook as a key priority.Ueda also highlighted the transformative impact of generative AI on the financial industry.
Massive Treasury Bond Sell-Off by Japan and China
Meanwhile, Bloomberg reports that Japan and China, two of the largest holders of U.S. government debt, sold significant amounts of U.S. Treasury bonds during the third quarter of this year. Japanese investors offloaded a record $61.9 billion worth of these bonds in the quarter ending September 30, while Chinese funds sold $51.3 billion in the same period, marking the second-largest volume recorded. These sell-offs occurred ahead of the U.S. presidential election and Donald Trump’s victory.
Bank of Japan (BOJ) to Release Review of Monetary Policy Tools
According to Reuters, the Bank of Japan (BOJ) is set to release the findings of a comprehensive review next month, evaluating the advantages and drawbacks of various unconventional monetary policy tools employed over the past 25 years to combat deflation. This review is seen as a symbolic step towards ending BOJ’s era of massive stimulus measures.
The report will include findings and surveys that justify BOJ’s plan to gradually normalize its monetary policies. The review’s results are expected to be published after the final BOJ policy meeting of the year, scheduled for December 18–19, and may include a potential rate hike from the current level of 0.25%.
Japan’s ruling coalition, comprising the Liberal Democratic Party (LDP) and Komeito, has reached an agreement with the opposition Democratic Party for the People (DPP) on an economic stimulus package. The package includes cash handouts for low-income households, subsidies to assist with utility bill payments, and additional investments in artificial intelligence and semiconductors.
The three parties have agreed to raise the income tax threshold and continue discussions on reducing gasoline taxes. This agreement requires legislative revisions to be addressed during next year’s parliamentary session. Following the ruling coalition’s loss of its majority in the lower house, DPP’s support has become crucial for advancing the package. However, some economists have expressed skepticism about the package’s limited impact on boosting consumer spending.
BOJ Chief Kazuo Ueda’s Remarks:
Kazuo Ueda, the BOJ Governor, stressed the need for the government to monitor medium-term financial sustainability. He stated that the policies of the new U.S. administration will be closely examined and integrated into Japan’s economic outlook as a key priority.Ueda also highlighted the transformative impact of generative AI on the financial industry.
Massive Treasury Bond Sell-Off by Japan and China
Meanwhile, Bloomberg reports that Japan and China, two of the largest holders of U.S. government debt, sold significant amounts of U.S. Treasury bonds during the third quarter of this year. Japanese investors offloaded a record $61.9 billion worth of these bonds in the quarter ending September 30, while Chinese funds sold $51.3 billion in the same period, marking the second-largest volume recorded. These sell-offs occurred ahead of the U.S. presidential election and Donald Trump’s victory.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.