The USD/JPY pair got quite a boost on Wednesday as the Bank of Japan has made it well-known they do plan on extending their inflation target to roughly 3%. Because of this, they will be weakening the Yen, and buying assets as well as bonds. This should continue to weaken the Yen overall, except against riskier currencies as they may be suspect from time to time in this current environment.
However, there is also a natural run to the US dollar right now in terms of trying to be “safe.” And as such we should see this market continue higher. If we can make a daily close above the 80.60 level, we are willing to buy this market and aim for 84. Otherwise, we will be more than likely on the sidelines.
Written by FX Empire