By Areena FxAs written, no changes to BOJ monetary policy, no changes to loose money supplies nor to interest rates. And the BOJ favorite statement: the Economy is recovering moderately. The economy has been recovering moderately every statement since 2012.
While Western central banks continue to tighten money supplies and literally destroy own economies by raising rates and dropping money supplies, the BOJ maintained loose money policies, never moved interest rates and supported the Japanese Economy in good condition.
Ueda Man’s statements reveal If this then that computer jargon rather than firm control of present and future monetary policy. If this then that to statements is derived from the near equal weighing to the BOJ board by the north/ south divide. Ueda Man will continue with wishy-washy statements as the BOJ and Ueda Man appointments remain until 2026.
Consider Ueda Man, BOJ may raise, or maybe not. End negative rates or maybe not. Loose money is possible but maybe not. Normalization is possible but maybe not.
Quote From FxStreet: Cannot deny some negative effect of negative interest rate policy on financial institutions’ profitability. But banks are seeing strong profits.
Ueda Man arrived at the wrong time in history to lead the BOJ.
Central banks are famous for delivering smoke as headlines to send traders on wild goose chases.
Take Ueda Man’s wage statement. Japan minimum wages run from 961 Yen to 985 or 9465.84% and an increase of 2.49%. But 985 highs may reveal no increase and drop to 961 or 2.43%.
For Japanese minimum Wages are dealing with roughly 2% ranges and as a decimal 0.02. The effect to 2% or 0.02 at 3.30 Inflation = 3.28 lows and 3.32 on the high side.
The same zero effects are seen from Average monthly salaries and Wages in USD terms.
The Ueda Man statement to Wage growth to support Consumption is nonsense to throw traders off the real monetary policy intended track.
USD/JPY
From Sunday, 144.12 and long was an easy target. USD/JPY achieved highs at 144.66. Lows at 142.00’s.
The trader mission on Sunday: Long Anywhere, set Target and walk away to enjoy life as +200 pips was profit quickly and easily.
Higher for USD/JPY must break 145.68. The break is not expected this week. Above remains 144.71, 144.93 and 145.19. USD/JPY trades at the top. Shorts target 143.73 and easily.
For the week, we have + 200 ish pips. Downside should offer another 80 ish pips for free money.