Global macro overview for 22/03/2017:
The Bank of Japan Meeting Minutes revealed interesting views regarding the inflation expectations and economic growth. The Bank of Japan (BOJ) held to its view that inflation and growth will accelerate in the near future, but that global financial markets were a source of greater uncertainty in the wake of the U.S. presidential election. At the March 15-16 policy meeting BOJ policymakers voted 7-2 to stand pat on monetary policy and opting to maintain their program of negative interest rates and yield curve targeting. In leaving monetary policy unchanged, the BOJ raised its outlook on the economy over the next three years. The outlook for the fiscal year 2016 was raised to reflect 1.4% growth from a previous estimate of 1%. The outlook for 2018-2019 growth was revised up by 0.2 percentage point each year.
Let's now take a look at the USD/JPY technical picture at the daily time frame. The price just broke below the important technical support at the level of 111.30 and if the daily candle will close on its lows, then the next target would be at the level of 109.02 (50%Fibo retracement of the last swing up). The momentum points to the downside as well and there is no sign of any bullish divergence yet.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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