It’s been a dramatic day to end a month for the history books. What’s next?
How do you trade USD/JPY now?
Buy and hang on for dear life
Wait for a pullback of at least 50 pips
Wait for a pullback fo at least 100 pips
Sell it
Here is a reaction from the BOJ decision:
Nick Gartside J.P. Morgan Asset Management chief investment officer for fixed income: “With the two year anniversary of Abenomics approaching, and growth and inflation faltering, the strong and decisive action from the Bank of Japan shows that it is not just the ECB that will ‘do whatever it takes’. For central banks, with monetary policy at the zero bound, there is no Plan B. Depending on the evolution of economic growth and inflation from here, the risk remains that we see more (rather than less) easing. What does it mean for markets? It anchors government bonds at low, sub-inflation levels and reinforces the case for investors to hold well researched higher yielding assets such as corporate bonds, both high yield and investment grade.”
