The Bank of Japan (BoJ) will hold a meeting at the end of October and announce their projection on the economy and inflation. However, market doubts if BoJ will make a significant change on the stimulus.
There is survey from Reuters Corporate Survey about pessimism from Japanese companies about BoJ’s next policy. The companies doubt that inflation will change and there will be significat effect on the economy from the BoJ meeting.
Intraday bias for USDJPY currently is bullish as a symmetrical triangle pattern is emerging on 4-hrs chart. This pattern will be confirmed if the price manages to break the pattern’s upper line. In that case, I expect the USDJPY will move higher with 104.674 as target and 105.026 in extension.
However, the pattern will fail if the lower line breaks instead. In that case, the bullish scenario I mentioned above likely will fail and USDJPY probably will fall to 103.230-102.800.
– Buy on symmatrical triangle’s confirmation; target at 104.674 or 105.026