{"id":36449,"date":"2015-11-27T08:28:15","date_gmt":"2015-11-27T13:28:15","guid":{"rendered":"http:\/\/www.ino.com\/blog\/?p=36449"},"modified":"2015-11-25T11:28:27","modified_gmt":"2015-11-25T16:28:27","slug":"usdjpy-bullish-on-the-dips","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/","title":{"rendered":"USDJPY: Bullish On The Dips"},"content":{"rendered":"

\"Lior<\/p>\n


<\/p>\n

From the Bank of Japan\u2019s recent monetary statements, one might assume that Yen bears have hit a brick wall. The BoJ refrained from adding more stimulus and kept its \u00a580 trillion annual bond purchases unchanged. <\/p>\n

The BoJ\u2019s reticence seems a disquieting throwback to the monetary policy of the Shirakawa days. Then, the BoJ was in a clear state of denial and refrained from making extra stimulus. Now, though it may seem history is repeating itself, this is not the case. Governor Kuroda is certainly no Shirakawa, and the Yen is not about to get stronger.<\/p>\n

What Is The BoJ Really Doing?<\/h2>\n

At first blush, it just doesn\u2019t add up. How can this be the same Haruhiko Kuroda? The man who announced \u00a580 trillion in stimulus in a jaw dropping move suddenly and inexplicably turned passive. But, as the saying goes, appearances can be deceiving. In fact, the BoJ is really making a very calculated move. <\/p>\n

Those that are familiar with Japanese culture tend to emphasize the importance of nuance in every statement. But there was no need to decipher nuance this time around. In no uncertain terms, Kuroda bluntly stated it was time for the government to share the burden. In order to revive the Japanese economy, Kuroda called openly and vociferously for fiscal reform. <\/p>\n

Why Pressure The Government?<\/h2>\n

Kuroda is a highly calculating central banker. As such, he is well aware of the first rule in central banking. That is that credibility is the highest virtue for a central banker. When growth stabilized among Japan\u2019s trading partners, it was clearly a good time to weaken the Yen. That would then amplify the momentum of Japanese exporters. <\/p>\n

But this strategy is only helpful when global demand for goods is rising. Then, a weaker Yen could help Japanese exporters win more business and stimulate growth. But when demand is weak a weaker currency tends to be nothing more than a Band-Aid. <\/p>\n

So in Kuroda\u2019s eyes, the focus should shift to the government in stimulating domestic demand. Indeed, Kuroda\u2019s pressure does appear to be working. Shinzo Abe\u2019s government has reversed course from its fiscal tightening and is drafting a round of stimulus. <\/p>\n

What It Means For The JPY<\/h2>\n

What happens when the central bank refrains from more stimulus while the government moves towards a larger fiscal deficit? Some might say it's six of one, half-dozen of the other. In either case it is the same outcome; more Japanese Yen in circulation. <\/p>\n

While on the face of it one might conclude that stimulus in Japan has hit a brick wall it\u2019s really only changed form. Japan is moving from monetary stimulus to fiscal stimulus. Therefore, nothing is new under the \u201crising sun\u201d and the trajectory for the USD\/JPY can continue to be bullish. Especially now, with the Federal Reserve on the cusp of hiking rates. <\/p>\n

And if this is the case, then the strategy for the pair should become clear; every dip in the USD\/JPY is temporary. That makes it a good opportunity to jump into the trend at a better price.<\/p>\n

\"Daily<\/a>
\nChart courtesy of Metaquotes<\/a><\/span><\/p>\n

Look for my post next week.<\/p>\n

Best,
\nLior Alkalay<\/a>
\nINO.com Contributor - Forex<\/p>\n

Disclosure: This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

From the Bank of Japan\u2019s recent monetary statements, one might assume that Yen bears have hit a brick wall. The BoJ refrained from adding more stimulus and kept its \u00a580 trillion annual bond purchases unchanged. The BoJ\u2019s reticence seems a disquieting throwback to the monetary policy of the Shirakawa days. Then, the BoJ was in […]<\/p>\n","protected":false},"author":20,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6920],"tags":[254,2720,7671,8141,6826,6926,6815,7378],"class_list":["post-36449","post","type-post","status-publish","format-standard","hentry","category-ino-com-contributors","tag-forex","tag-forex-analysis","tag-haruhiko-kuroda","tag-japanese-monetary-policy","tag-japanese-yen-jpy","tag-lior-alkalay","tag-the-bank-of-japan-boj","tag-usdjpy-forexusdjpy"],"yoast_head":"\nUSDJPY: Bullish On The Dips - INO.com Trader's Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"USDJPY: Bullish On The Dips - INO.com Trader's Blog\" \/>\n<meta property=\"og:description\" content=\"From the Bank of Japan\u2019s recent monetary statements, one might assume that Yen bears have hit a brick wall. The BoJ refrained from adding more stimulus and kept its \u00a580 trillion annual bond purchases unchanged. The BoJ\u2019s reticence seems a disquieting throwback to the monetary policy of the Shirakawa days. Then, the BoJ was in […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/\" \/>\n<meta property=\"og:site_name\" content=\"INO.com Trader's Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/inocom\/\" \/>\n<meta property=\"article:published_time\" content=\"2015-11-27T13:28:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2015-11-25T16:28:27+00:00\" \/>\n<meta name=\"author\" content=\"Lior Alkalay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Lior Alkalay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/\"},\"author\":{\"name\":\"Lior Alkalay\",\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/person\/9914813c4deb86625f2f86781b92960d\"},\"headline\":\"USDJPY: Bullish On The Dips\",\"datePublished\":\"2015-11-27T13:28:15+00:00\",\"dateModified\":\"2015-11-25T16:28:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/\"},\"wordCount\":584,\"commentCount\":2,\"publisher\":{\"@id\":\"https:\/\/www.ino.com\/blog\/#organization\"},\"keywords\":[\"forex\",\"forex analysis\",\"Haruhiko Kuroda\",\"Japanese Monetary Policy\",\"Japanese Yen (JPY)\",\"lior alkalay\",\"The Bank of Japan (BOJ)\",\"USD\/JPY (FOREX:USDJPY)\"],\"articleSection\":[\"INO.com Contributors\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/\",\"url\":\"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/\",\"name\":\"USDJPY: Bullish On The Dips - INO.com Trader's Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.ino.com\/blog\/#website\"},\"datePublished\":\"2015-11-27T13:28:15+00:00\",\"dateModified\":\"2015-11-25T16:28:27+00:00\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.ino.com\/blog\/#website\",\"url\":\"https:\/\/www.ino.com\/blog\/\",\"name\":\"INO.com Trader's Blog\",\"description\":\"Expert Charts, Trading Tips and Technical Analysis from INO.com\",\"publisher\":{\"@id\":\"https:\/\/www.ino.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.ino.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.ino.com\/blog\/#organization\",\"name\":\"INO.com Trader's Blog\",\"url\":\"https:\/\/www.ino.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.ino.com\/blog\/wp-content\/uploads\/2018\/12\/inologo-400.jpg\",\"contentUrl\":\"https:\/\/www.ino.com\/blog\/wp-content\/uploads\/2018\/12\/inologo-400.jpg\",\"width\":400,\"height\":472,\"caption\":\"INO.com Trader's Blog\"},\"image\":{\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/inocom\/\",\"https:\/\/www.linkedin.com\/company-beta\/1056449\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/person\/9914813c4deb86625f2f86781b92960d\",\"name\":\"Lior Alkalay\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/1da073701fbf262a01d147fff9463c68?s=96&d=identicon&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/1da073701fbf262a01d147fff9463c68?s=96&d=identicon&r=pg\",\"caption\":\"Lior Alkalay\"},\"url\":\"https:\/\/wwwtest.ino.com\/blog\/author\/lior-alkalay\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"USDJPY: Bullish On The Dips - INO.com Trader's Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/","og_locale":"en_US","og_type":"article","og_title":"USDJPY: Bullish On The Dips - INO.com Trader's Blog","og_description":"From the Bank of Japan\u2019s recent monetary statements, one might assume that Yen bears have hit a brick wall. The BoJ refrained from adding more stimulus and kept its \u00a580 trillion annual bond purchases unchanged. The BoJ\u2019s reticence seems a disquieting throwback to the monetary policy of the Shirakawa days. Then, the BoJ was in […]","og_url":"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/","og_site_name":"INO.com Trader's Blog","article_publisher":"https:\/\/www.facebook.com\/inocom\/","article_published_time":"2015-11-27T13:28:15+00:00","article_modified_time":"2015-11-25T16:28:27+00:00","author":"Lior Alkalay","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Lior Alkalay","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/#article","isPartOf":{"@id":"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/"},"author":{"name":"Lior Alkalay","@id":"https:\/\/www.ino.com\/blog\/#\/schema\/person\/9914813c4deb86625f2f86781b92960d"},"headline":"USDJPY: Bullish On The Dips","datePublished":"2015-11-27T13:28:15+00:00","dateModified":"2015-11-25T16:28:27+00:00","mainEntityOfPage":{"@id":"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/"},"wordCount":584,"commentCount":2,"publisher":{"@id":"https:\/\/www.ino.com\/blog\/#organization"},"keywords":["forex","forex analysis","Haruhiko Kuroda","Japanese Monetary Policy","Japanese Yen (JPY)","lior alkalay","The Bank of Japan (BOJ)","USD\/JPY (FOREX:USDJPY)"],"articleSection":["INO.com Contributors"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/","url":"https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/","name":"USDJPY: Bullish On The Dips - INO.com Trader's Blog","isPartOf":{"@id":"https:\/\/www.ino.com\/blog\/#website"},"datePublished":"2015-11-27T13:28:15+00:00","dateModified":"2015-11-25T16:28:27+00:00","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.ino.com\/blog\/2015\/11\/usdjpy-bullish-on-the-dips\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.ino.com\/blog\/#website","url":"https:\/\/www.ino.com\/blog\/","name":"INO.com Trader's Blog","description":"Expert Charts, Trading Tips and Technical Analysis from INO.com","publisher":{"@id":"https:\/\/www.ino.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.ino.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.ino.com\/blog\/#organization","name":"INO.com Trader's Blog","url":"https:\/\/www.ino.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ino.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.ino.com\/blog\/wp-content\/uploads\/2018\/12\/inologo-400.jpg","contentUrl":"https:\/\/www.ino.com\/blog\/wp-content\/uploads\/2018\/12\/inologo-400.jpg","width":400,"height":472,"caption":"INO.com Trader's Blog"},"image":{"@id":"https:\/\/www.ino.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/inocom\/","https:\/\/www.linkedin.com\/company-beta\/1056449\/"]},{"@type":"Person","@id":"https:\/\/www.ino.com\/blog\/#\/schema\/person\/9914813c4deb86625f2f86781b92960d","name":"Lior Alkalay","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ino.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/1da073701fbf262a01d147fff9463c68?s=96&d=identicon&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1da073701fbf262a01d147fff9463c68?s=96&d=identicon&r=pg","caption":"Lior Alkalay"},"url":"https:\/\/wwwtest.ino.com\/blog\/author\/lior-alkalay\/"}]}},"_links":{"self":[{"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/posts\/36449"}],"collection":[{"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/comments?post=36449"}],"version-history":[{"count":0,"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/posts\/36449\/revisions"}],"wp:attachment":[{"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/media?parent=36449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/categories?post=36449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/tags?post=36449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}