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EUR/JPY binary signal - Bank of Japan Meeting - 23 Jan 2018

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Signal details
Entry Price: 
135.93
Close Price: 
135.62
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
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The Bank of Japan's monetary policy meeting was earlier today. According to the monetary policy statement, Japan's central bank held interest rates steady at -0.10% and also kept its bond purchases steady at a pace of 80 trillion yen.

The central bank was widely expected to keep its monetary policy steady amid speculation that the BoJ was looking towards some form of tapering. Few weeks ago, the Bank of Japan announced that it was reducing the number of longer dated bonds that it was purchasing under its QE program. This saw the yields on the 10 and 20-year Japanese government bonds rising.

The announcement also led to the markets speculating that the next central bank operation from the BoJ will be a cut to its bond purchases. Officials at the BoJ have repeatedly cited concerns on the BoJ's massive bond purchases and more recently expressed concerns that it would affect the financial system and also hit the corporate sector.

At today's meeting, the BoJ left rates steady, although a press conference by BoJ Governor Kuroda is expected to take place later in the day. Kuroda is expected to give more clarity on the BoJ's forward guidance. However, we do not expect Kuroda to make any big announcements at today's meeting. The BoJ's inflation continues to elude the central bank's target of 2.0%. But there have been signs that inflation was starting to rise albeit it at a slower pace.

Based on the above, today's binary options signal is EURJPY. The currency pair has been trading flat near the highs of 135 - 136 for the past few daily sessions. This potentially suggests that the upside momentum is exhausted.

Therefore, we would purchase daily PUT options at 135.93 for a 21:00 GMT expiry time. We expect an intraday retracement to this level before EURJPY closes lower on the day.

binary options signal eurjpy 23 jan 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.