Traders are seeing Bank of Japan announcing any new stimulus this week. The central bank is trying to maintain the yield curve control policies as well as negative rates.
The most important headline for the week is about the downsize of ETF purchases as stocks are getting choppy recently. Bank of Japan’s Governor Kuroda is giving a presser after the official statement is released.
All eyes are now on USD/JPY, how it will respond to the U.S. yield curve. Biden’s inauguration and earnings reports in the U.S. might effect its intraweek trends and affect the rest of the yen crosses.
JPYs price action will be continued to be affected by the coronavirus lockdown and recovery concerns. Few other things that might dominate the safe-haven yen are Policy decisions by the Bank of Canada (BOC) and European Central Bank (ECB), as well as PMI releases from the U.S., U.K., Eurozone, and Australia.