BOJ’s Masu to Nikkei says:
- BOJ is close to decision to raise rates
- Says it’s not good for real interest rates to be deeply negative
- relationship with the neutral rate of interest rate. Japan’s policy rate is lower than the neutral rate.
He says that most countries rates are higher than the neutral interest rate citing the US as an example.
The JPY has been weakening as a result of the lower rates in Japan relative to other countries. The EURJPY has moved to new all-time highs (lower JPY). The USDJPY traded to the highest level since January.
Today, the price has moved lower and tested the rising 100 hour moving average currently at 156.296. It would take a move below that moving average to give the sellers a victory from a technical perspective (with work to do). The 38.2% retracement of the last trend move higher from the November low comes in at 155.939. The rising 200 hour moving average and 50% are near 155.34 and 155.42. Getting below those levels is needed to take back more control from the buyers.
This article was written by Greg Michalowski at investinglive.com.