Moody’s: Japan’s GDP growth in 2016 is expected to be between 0.5% -1.5%.
Bank of Japan Monetary Policy Committee Shirai said earlier by the management, inflation is expected to rise steadily take some time.
Personal economic activity is lower than expected Bank of Japan expected value.
Cautious outlook on prices than the BOJ expected value.
If the Bank of Japan expected inflation scenario is completely impossible, it might consider adjusting monetary policy.
We expect the fiscal year 2016 to the fiscal year 2017 the inflation rate towards the 2% rise.
Individual core CPI is expected to rise slightly more than 1 percent in the 2016 fiscal year while the average level of 2017 fiscal year will be slightly more than 1.5%.
Given the weakness in machinery orders and a labor shortage, some capital spending plans may be delayed.
Japan returned to deflation risk is extremely low.
2% inflation target does not just mean rising prices, it should also be accompanied by the growth of wages and consumption.
BoJ Minutes: Most members felt that the Bank of Japan to improve the core inflation trend.
Most members thought that if price trends change, should not hesitate to take action.
One member considered marginal effect QQE is declining.
Japan’s economic growth may be higher than the potential level.
Most members felt that the Bank of Japan, in the fiscal year 2017 economic growth will slow below potential.
A Bank of Japan members felt that, if necessary, ways to further relax the policy has no restrictions.
Few members felt that CPI can not be reached within the time limit in the Bank of Japan is expected to 2 percent inflation target.
On the price front of the downside risk. source: WSJ
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Last week, the cross finally close below 200wema and this week the cross facing resistance at the same level. In the daily chart, the cross lost all the daily moving averages.
Trading support finds at 130.00, 129.50 and 128.80
Resistance seems at 130.70, 131.00 and 131.40
The cross has been rejected at 20msma for five consecutive months. Finally trading far below the same approaching support zone finds between 129.40 and 129.20.
Earlier the cross formed a large descending triangle. In September, it gave a false breakdown currently aiming at the breakdown target at 127.50 and 125.00 levels.
Fresh selling opens below 130.00 as the cross is trading at 130.40 during Asia’s session.