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EUR/JPY Signal - BoJ Meeting - 31 Jan 2017

Signal details
Entry Price: 
121.50
Close Price: 
121.87
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
ITM
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The Bank of Japan's monetary policy meeting this morning saw the central bank leaving interest rates unchanged at -0.10% and maintaining the asset purchases at the rate of 80 trillion yen, unchanged. The yen strengthened slightly following the announcement alongside a modest risk off sentiment in the market. BoJ governor, Kuroda said that it was too early to discuss an exit strategy as the central bank turned positive on long term inflation expectations and also noted that growth could rise 0.5% in the near term.

The markets are widely speculating that the BoJ could start to taper its asset purchase program sometime this year, but so far officials have been tightlipped. The yen is currently caught between a central bank that is maintaining the status quo on monetary policy and a risk off sentiment that is seeing inflows into the yen, pushing price higher.

EURJPY fell sharply yesterday but there is scope for prices to recover from yesterday's decline. Already there are signs that a bottom could be in place after prices are seen attempting to reverse off 121.50 - 121.30 region. Therefore, daily CALL's are ideal, between 121.75 - 121.50 for a 21:00 GMT expiry time.

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.