The USD/JPY pair is trading near the 104.00 figure after the Bank of Japan (BoJ) left its monetary policy unchanged but downgraded growth and inflation forecasts. The focus now shifts to US Q3 Gross Domestic Product that is seen posting a record bounce, FXStreet’s Chief Analyst Valeria Bednarik briefs.
“The BoJ left rates unchanged at -0.1% and will continue to buy JGBs to keep 10-year yields at around 0%. Also as expected, policymakers trimmed growth and inflation forecasts for the current fiscal year, although at the same time said they expect a stronger bounce next year. As it happens with other central banks, they also warned the outlook is highly uncertain and dependent on the pandemic developments.”
“The focus now shifts to the US Q3 Gross Domestic Product, with the annualized figure seen improving from -31.4% to 31%, a record bounce. At the same time, the European Central Bank will announce its latest decision on monetary policy.”
“The 4-hour chart shows that the 20 SMA is accelerating its decline near the mentioned weekly low and well below the larger ones, which also head south. Technical indicators maintain their downward slopes within negative levels, approaching oversold readings.”
“The pair needs to clear 103.99, September low, to extend its slide further during the upcoming sessions.”