USD/JPY moved higher as markets calmed. Can it continue or will risk aversion trigger flows to Japan? The rate decision by the BOJ is the main event. Here is an outlook on the major events moving the yen and an updated technical analysis for USD/JPY.
According to the latest data, Japan’s economy contracted by only 0.3% in Q2, better than originally published. Worries about future growth due to the Chinese slowdown were brushed away for now. Nevertheless, there is growing talk that the BOJ could introduce more easing in late October. In the US, positive JOLTs data was countered by a weak consumer confidence number. Will the Fed act?
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