09/11/2015 - Central banks in focus for USD/JPY

* Central banks in focus for USD/JPY
* Market Movers: Weekly Technical Outlook
* Look Ahead: Stocks
* Look Ahead: Commodities
* Global Data Highlights

It's shaping up to be a massive week for USD/JPY, with policy meetings at both the Fed and Bank of Japan (BoJ). The former meeting may be the mostly hotly anticipated central bank meeting of the year, with economists and the market split on what the FOMC will do. Meanwhile, the BoJ is widely expected to leave its policy stance unchanged on Tuesday, but the economy has largely failed to respond to bank's aggressive easing program and economic data remains depressed; thus, it looking more and more likely that the BoJ will have to pump more stimulus into the economy in coming quarters. This expected policy divergence lays a strong long-term fundamental foundation for USDJPY, although it won't protect the pair in the near-term.

The market is juggling the idea of tighter interest rates in world's largest economy and the impact this will have on asset prices and the global economy. The US economy is looking more and more primed for tighter monetary policy on the back of a strong labor market and a heightened level of economic activity. One of the only ingredients missing is inflation, which happens to be huge part of the policy mix..... Full text »

Facebook | Twitter | YouTube

from FOREX.com's Weekly Strategy http://ift.tt/1d8RLLQ