The Japanese yen is gearing up for an eventful week with Japan’s monetary policy statement looming on Thursday.
The USD/JPY pair kicked off this week’s trading fairly flat. The sideways movement is coming on the heels of just 0.2% weekly gain in the exchange rate, as the dollar pushed higher for a second straight week. The events to follow, however, could change that depending on what happens.
The Bank of Japan is scheduled to announce its policy statement on Thursday. So far, the central bank has been fervently defending its ultra-loose monetary policy to allow for an economic expansion even as consumer price inflation has creeped up to a multi-decade high.
The event will mark the inaugural press conference of Kazuo Ueda, the new Bank of Japan governor. The update on the country’s policy statement could elevate the volatility in the USD/JPY pair. What’s more, depending on Ueda’s words, there could be excessive fluctuations and wild swings.
