FX.co ★ Global macro overview for 29/07/2016

Global macro overview for 29/07/2016:

The Bank of Japan had decided to leave the interest rate unchanged at the level of -0.1% just as expected. Moreover, the annual rise in the monetary base had been left at the level of 80T yens, just as expected as well. In the monetary policy statement, BoJ governor Kuroda said the BoJ did not feel any pressure from Japanese government before the interest rate decision and any more easing will depend on the economic situation. Moreover, he mentioned that current policy steps and government fiscal stimulus are ready to provide synergy effects on economy and BoJ will continue QQE with negative interest rates as long as needed to meet price goal.

Let's now take a look at the USD/JPY technical picture at the daily time frame. The market is trading just at the important daily support level of 103.40 as the bears are trying to push the price lower after BoJ decision. The price trades below the 55,100 and 200 daily moving average, which indicates a bearish outlook in the near term.