These jumpy times ahead of central bank decisions
Next week the BOJ lock themselves in the broom cupboard for their monetary policy meeting and the market is trying to work out the next move for QQE. Will we get more or will we get nothing?
The Bloomberg story just out lacks any real details. It's a "people familiar with deliberations" story. It shouldn't be swiftly dismissed though, as a near 40 odd pip drop testifies to
We pulled up at a familiar level though and we're still walking around the same garden
USDJPY H1 chart
The drop took us below the overnight low around 119.75/80 and we're struggling to get back above there right now. There's further support at 119.50 ahead of the lower triangle bottom at 119.40
120.25/35 is the resistance to get over above. We'll likely see it forming at 119.95/120.00 now also
Update: A bit more from the story now and the sources say the BOJ are using strong corp profits and a tight labour market as a sign of "a virtuous economic cycle taking root in Japan", and inflation ex-energy rising, as a reason to sit tight and watch the trend
