USD/JPY +1.1% after no change from Bank of Japan rate decision
USD/JPY price analysis
Source: tastyfxUSD/JPY rose more than 200 pips from below 142.50 prior to the Bank of Japan meeting to over 144.50 following the event before settling near 144.30.
The rise in this major forex pair comes after a month of bearish price action that saw USD/JPY go from above 150.00 in mid-November to below 142.00 on December 13th.
USD/JPY is still far higher than its historical average, which is closer to 110.00 when looking at the last 10 years of data.
Bank of Japan maintains dovish economic policy
The Bank of Japan kept its interest rates unchanged at December’s meeting amid growing expectations that they might soon lift overnight interest rates from -0.1%.
Japanese overnight rates have been negative for more than five years and have not been raised since 2007.
Though Bank of Japan Governor Ueda kept rates unchanged, he said that he is, “always thinking about various scenarios about how we could change policy when certain conditions fall into place.”
How to trade USD/JPY
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on USD/JPY
Trading forex requires an account with a forex provider like tastyfx. USD/JPY can be found in tastyfx's platform under the 'Major' pairs tab. Many traders also watch major forex pairs like GBP/USD and AUD/USD for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s YouTube channel. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
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