Long EUR/JPY as BOJ admits it can be bullied by markets Shinichi Uchida, Deputy Governor of the Bank of Japan (BOJ), says the bank won’t hike interest rates when markets are unstable, delivering a clear message on what traders need to do to prevent them doing so again: create volatility.
It’s an amazing statement, signalling the BOJ can and will be bullied by markets to avoid doing what is right for the Japanese economy. It’s an incredibly dovish admission, giving traders the green light to re-establish carry trades until the BOJ starts making noise about hiking rates again.
Looking at EUR/JPY, we may see a morning star pattern on the daily timeframe after Uchida’s unexpected remark. Should the pair establish a foothold above 160.30, consider buying above the level with a stop below for protection. The initial trade target is the 200DMA at 164.11. Good luck!
DS
