This Monday and Tuesday, April 26 and 27, the Bank of Japan (BoJ) carries out the monthly meeting where they evaluate the state of the Japanese economy. Given this, they will make a decision on monetary policy. The decision and evaluation is contextualized in a state of emergency declared in the last hours.
The speculation is that changes in the interest rate that they will decide do not prevail. Since the last CPI published a slight growth in the inflationary rate in March towards -0.1%. Therefore, they are expected to keep the interest rate at -0.10%.
Like the monetary policy of the ECB or the FED, until inflation reaches or moves around 2%, a change in monetary policy is unlikely.
They will be expected to report on the bond purchase decision, it has slowed down, which would not imply a change in policy.
The economic situation of the country could suffer setbacks since they had to take restrictive measures to the circulation, called “state of emergency” for Tokyo, Kyoto, Osaka and Hyogo. In Tokyo and Osaka, they have planned to install large vaccination centers for the population of those cities. The objective is to contain the current spread of the virus and take into account the celebration of the Olympic games that will be held there in the coming months.
The USDJPY closed in a sell zone. The sell scenario remains between 107.95 and 107.87. Above 108.0 the preference is buyer.