The Bank of Japan will boost purchases of bond securities, whether it is expanding its program to stimulate or not this week.
This move by the BOJ could lead to expanding the monetary base by 80 trillion yen ($ 665 billion) a year. During the quarter ended September 30, buying bonds is 9.3 trillion yen, compared to 9 trillion yen in the three months ended March 31st.
Perhaps the extra money that will come in the economy will lead to JPY fall against major currencies. It is long investors to realize additional profits. Japan is facing the risk of recession, because the outlook is for further depreciation of the local currency in order to improve the trade balance and increase inflation.
Е.Dimitrov JrTrader
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