November 2, 2012
Somewhere deep inside the confines of the Bank of Japan, policy makers are dropping sake bombs left and right. After all, USD/JPY rose for the 4th day in a row, and 12th time in the past 15 trading days, as the pair closed 6 pips higher at 80.22.
Fine, it’s just 6 pips, but if you’re part of the BOJ, every pip matters! Keep in mind that at its last monetary policy statement, the BOJ announced an expansion of its asset purchase program by 11 trillion JPY, far less than what many market players were anticipating. As long as the yen keeps falling, the BOJ may choose to keep their fingers off the QE trigger.
Nothing lined up for today, but now that USD/JPY is fast approaching October’s high at 80.35, it’ll be interesting to see how yen pairs play out. Good luck trading today!
"The only cable I watch is the pound baby."