The Bank of Japan (BOJ) concluded its 2-day meeting and kept its asset purchasing program unchanged. The market was slightly disappointed and bought then the Japanese yen (JPY) in response to the muted action. However, forex traders are missing a very important detail about Japan's rate announcement. Economy minister Seiji Maehara attended the central bank's policy meeting. He is the first minister to attend the BOJ meetings in nine years. Mr. Maehara is known for criticizing the bank's actions, stating BOJ is not doing enough to ensure the 1.0% inflation goal is met and suggested the bank should buy foreign bonds as part of its easing measures.
The Japanese law must be revised to allow BOJ foreign bond purchasing by Japan, which will in effect weaken the Japanese yen against a basket of currencies, particularly EUR/JPY and USD/JPY. The BOJ will meet again on 30 October and I believe further easing measures will be taken by then. I would expect USD/JPY to sustain its bullish momentum for the medium term as presented in trading opportunities for 2012.
CAD/JPY Technical Analysis, Strategy for Non-Farm PayrollsFor today's session the main focus is the US Non-Farm Payrolls (NFP), October 2012. Many analysts predict the NFP will continue to improve but argue by how much.
The main FX pair to focus would be CAD/JPY:
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