Before the decision of the Bank of Japan's monetary policy on Tuesday and Q2's economic forecasts, Cabinet Office published its outlook for the Japanese economy says the following statement:
"Real GDP growth in FY 2019 fell from 1.3% to 0.9%.
Real GDP growth in FY2020 is estimated at 1.2%.
The consumer inflation estimate in FY 2019 is 0.7%.
The consumer price inflation in FY2020 is estimated at 0.8%.
The USD / JPY is in the region of 108.60. "
In a statement by the Japanese Minister of Economy, he is quoted as saying that Japan's economic growth is projected to slow down: "The domestic economic growth is expected to continue, and growth will continue in the coming year, but it is imperative to risk the market. The job is good and domestic domestic demand is still seen in Japan. "
Analysts at TD say the Japanese bank can pursue a similar policy to reduce potential federal interest rates, but TD analysts think they will be more patient than other major central banks.
The central bank left its forward guidance unchanged, adopted in April that said "will keep very low-interest rates levels for an extended period of time at least through around spring 2020."
The yen hit new highs in response to the bank's announcement and the USD / JPY pair approached 108.65.
The US central bank appears to be focusing on lowering interest rates, as well as Mr Trump's view that the dollar will weaken in the medium term.
Technical: It looks like the pair is in a triangle and could touch the 111.20 zone in the coming days and the MACD indicator indicates buyers are entering the pair and the pair after hitting 111.20 could have the potential to fall to the range of 104.80.
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