Today Bank of Japan, Policy maker decided not to change the policy this month. The governments will carry on easing which will increase an annual pace of about 60-70 trillion yen. Bank of Japan continue easing on account of achieving Inflation target at 2% and Fed tapering decision to reduce in monthly asset purchases by $10 billion helped Yen to depreciate at 5 year low against Dollar.
However, Japan CPI is at around 1% year on year and going to increase for time being. The Inflation expectation is raising and aim to achieve the target at 2%. The Fed Tapering may help BOJ to increase sales Tax in April and may help to bring up Export in Japan.
However, economy data are not impressive this month, as Current account data below expectation -0.06T compare to previous month -0.13T, Trade balance below expectation -1.35T compare to previous month -1.09T.
Today Yen open at 104.12, made the low at 104.09 and high at 104.47. After BOJ decision Yen little change against Dollar. On 24th Dec we have BOJ monthly report and 27th Dec CPI data, which may direct Yen in near term. Trader should watch Japan economy event next week, which will help them take right decision in investment.