BoJ to bring Yen volatility; will buyers hit 100.00 jackpot?

FXstreet.com (Barcelona) - The BOJ will announce its monetary policy decision later today. The time of the statement normally comes between 3.30 - 5.30GMT, but since no new policies are expected to be announced, it suggests no major delays.

While the shocking shift in policies announced on April 4 still resounds vividly in the marketplace, main reason to think the BoJ will stay pat buying time to see the effects in price levels, what is expected is a formal time-frame to achieve the 2% inflation target.

According to Eamonn Sheridan, currency analyst at Forexlive: "While it is widely thought that hitting the target in 2 years is not a reasonable expectation, if the BOJ does announce ’2 years’ then it may indicate there are further policy measures in the works yet to be announced. If the BOJ announces ’3 years’ as the target date, it should be seen by the market as a more reasonable expectation, and that the BOJ is more dredible, but that there may not be other policy measures currently being considered."

The announcement will most likely be a catalyst for yen volatility, with the 100.00 level no far. According to Sean Lee, founder at FXWW: "USD/JPY is still being dominated by the big barrier protection ahead of 100.00, with big players selling huge amounts just ahead of it and then buying these back on any decent dips. Nice money if you can get it!"