As we were preparing ourselves yesterday for it, today’s news should not be a surprise for us – BOJ officials sat down earlier today to discuss and make a decision of the future monetary policies of the country. Surely, such an important matter was bound to attract our attention and become the main piece of news for the day. And so it is. But we were worried in vain as yen is going to stay put, so to say. According to Reuters “The Bank of Japan kept monetary policy steady and nudged up its economic growth forecasts on Tuesday, as the government’s stimulus package and receding pessimism over the global outlook took some pressure off the central bank to top up stimulus.”

What does this mean? Well, first of all that Japanese economy is doing just fine and even expected to grow this year.

Second that pessimistic outlook of the global situation and yen’s status as safe haven might just help yen survive in whatever situation may wait for us ahead. Of course, we are just hoping here, but I would really like that is the global economy was doing just fine and yen grew too. But, unfortunately, these two are do not have a dynamic like that.

We are waiting for the development of the situation with USD expected to change its pace against some of the currencies du to the WEF starting today in Davos.

The situation is getting more and more strained. Use our trading signals to make sense of it all.