USD/JPY Bull Trend Snaps Even as BoJ Sticks to Dovish Forward-Guidance

Japanese Yen Talking Points

USD/JPY slips to fresh monthly lows even as Bank of Japan (BoJ) Governor Haruhiko Kuroda strikes a dovish outlook for monetary policy, and recent price action raises the risk for a further decline in the exchange rate as dollar-yen finally snaps the upward trend from earlier this year.

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USD/JPY Bull Trend Snaps Even as BoJ Sticks to Dovish Forward-Guidance

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Fresh comments from Governor Kuroda suggest the BoJ has no intentions of moving away from its Quantitative/Qualitative Easing (QE) Program with Yield-Curve Control as ‘inflation is only 1 percent,’ and the central bank may continue to strike a dovish forward-guidance at the next interest rate decision on October 31 as price growth runs below the 2% target.

In contrast, the Federal Reserve may prepare U.S. household and businesses for an imminent rate-hike as the U.S. economy is now expected to growth 4.2% per annum in the third-quarter of 2018, and the deviating paths for monetary policy instills a long-term bullish outlook for USD/JPY as Chairman Jerome Powell Co. appear to be on

Article source: https://www.dailyfx.com/forex/fundamental/us_dollar_index/daily_dollar/2018/10/15/USDJPY-Bull-Trend-Snaps-Even-as-BoJ-Sticks-to-Dovish-Forward-Guidance.html