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  • BOJ announcement: To abandon monetary base target

    From forexlive.com

    Bank of Japan September monetary policy meeting announcement •Keeps negative rate unchanged •To expand monetary base until inflation stable above 2% •To modify its policy framework •Adopts QQE with yield curve control •To keep buying JGBs so balance of its holdings increases at annual pace of 80 trln yen •Introduces new market ops for yield curve control •Depending on market conditions may set JGB purchase size per auction to fixed amount or unlimited amount •Purchasing yields will be set per auction by indicating the spread from the benchmark yield which BOJ determines separately •Makes amendment ... (full story)

If I understand this correctly. Unlimited qe until 2% inflation hits. Well played boj. Let's hope you don't run out of money.
Do you know when is it quiet like that? When a bomb destructs. Bank accounts in this case.
why JPY is becoming weak? It should strong.
Quoting monira
why JPY is becoming weak? It should strong.
BOJ introducing QQE policies to control yield curves.
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Land of the rising banana
Quoting ChinaTraderz
BOJ introducing QQE policies to control yield curves.

After the BOJ Press meet,its clearly understood the Easing,ie Yen value manually Decreased by BOJ,so in coming days all yen pairs go higher & high ?
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Oh god lol all out of the money now by 200 plus pips
Quoting monira
why JPY is becoming weak? It should strong.
Wait for FOMC policy ( keep rate unchanged) YEN will comeback Strong .
Quoting jegas
After the BOJ Press meet,its clearly understood the Easing,ie Yen value manually Decreased by BOJ,so in coming days all yen pairs go higher & high ?
It also depends on what Fed does or doesn't. If interest rate hike, then sure UJ pair will fly. If not it may just crawl
All other currencies like GBP, EUR are also weak.
Quoting Ghassforex
Wait for FOMC policy ( keep rate unchanged) YEN will comeback Strong .
hope u reconsider selling yen. clear indicator that risk is on today. irregardless of what the fed does.
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New at this does all this Yen talk mean that the GBP the EUR and USD will weaken against the Yen
I think this is the best trick they ever come up with keep the qe same, rate same, changing some words around and bam yen weaken.
I am sort of lost and need help... can someone explain to me what is "Rate hike" and "the thing that is going on in the BOJ"
to explain it simply.. Rate hike is the increase of the interest rate... Which makes investors want to put their money with you.. But in order to put it with you, they must first buy into your currency.. This translates to a higher demand of your currency which makes it higher...

On the other hand, BOJ is removing the monetary base which means they can print as much money as they want in order to hit 2%.. This means that there will be more supply of Japanese yen...more supply translates to a decrease in Price..

But alll these are just simple explaination and even if fundamentally correct, the markets can stay irrational longer than you can stay solvent
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