USDJPY topping pattern as BoJ changes governor

of US dollar yen It looks like you’re charting a head and shoulders top. According to the pattern completion gap, the pattern is not yet completed, but the RSI is on the bearish side of 50 (green square). If we keep this side of 50, US dollar yen You will be under pressure.

Kazuo Ueda was recently appointed as governor of Japan’s central bank to succeed Haruhiko Kuroda. After decades of deflation, the country’s move to inflation could represent a positive change for the world’s third-largest economy. PhD economist Ueda is expected to gradually change Kuroda’s policy from MIT. The Bank of Japan has yet to show any willingness to normalize policy, but with the central bank controlling half of his $8 trillion Japanese bond market, even small changes could have a big impact. .

Adjusting the yield curve control system, which limits the spread between prime rates and bond yields of various durations, is expected to be one of Ueda’s first moves. The investor predicts that this change will come at his June meeting of the Bank of Japan’s board of directors, which could lead to an appreciation of the yen and make Japanese bonds more attractive to investors.