Most traders are paying close attention to tomorrow morning’s interest rate decision from the Reserve Bank of Australia. We need to pay attention to the reports that will be coming from the Bank of Japan Trade Team members said. Not so much the interest rate decision, because the BOJ’s hands are tied when it comes to moving on interest rates, but the press conference and monetary policy statement may indeed move the Japanese currency.

For a while now, economic releases coming from Japan have continued to highlight the poor state of the economy. However, there is growing speculation that the BOJ may not introduce new policy measures tonight as the central bank may wait to see the outcome of the government’s economic stimulus package before taking action. “The Japanese currency has weakened in the broad market for some time now and the next move higher for the Usd/Jpy could be a run at 101.70. That may be possible if the BOJ introduces new policy measures. However, if the yen strengthens on the back of tonight’s reports, a retracement to 99.50 could come rather quickly” Trade Team members said.