The Yen recovered significantly. Overview for 19.09.2019

On Thursday, USDJPY is trading downwards; the Bank of Japan decided to leave its monetary policy intact.

The Japanese Yen is getting stronger against the USD on Thursday afternoon. The current quote for the instrument is 107.89. 

Another meeting of the Bank of Japan was over today. Basically, everything remained unchanged: the rate is still -0.1% and the BoJ kept the target for the 10-year Japanese government bond yield at around 0%. The QE volume also remained the same at 80 trillion.

However, the regulator said that said it would review economic and price developments more thoroughly at the next policy meeting, heightening the chance of expanding stimulus if necessary as early as in October.

The Japanese economy is already falling. On one hand, continuous support from the regulator prevents the country from sliding into a recession. On the other hand, outside fundamental pressure interferes with export development, while global trade wars don’t allow companies and enterprises to rev up productionб because it’s difficult to estimate the final demand. 

The Yen seldom responds to statistics, but this time it couldn’t ignore the BoJ meeting results. The national currency was supported by the fact that the regulator isn’t expanding the QE volume right now.