Forex technical analysis: USDJPY rallies into the BOJ

Technical Analysis

Author: Greg Michalowski | forex

The BOJ is scheduled to announce the latest decision later tonight, and the USDJPY remains supported.  The  expectations are for no change in policy. The BOJ raised there bond buying in October. Oil prices are down which should be a great thing for the Japanese economy as they rely solely on imported energy.  Of course sharply lower energy will not help getting inflation to 2%, but it is “good inflation” – at least at first (if should increase spending).  Wage deals are expected to be negotiated soon and that too will be eyed as a potential stimulus to the economy, if they are sufficient.  If not, that could spell trouble (thank you Bud).

Technically, the pair is looking more bullish on the surge higher.