IMF Says BOJ Should Avoid Premature Exit from Monetary Easing

The International Monetary Fund said the Bank of Japan should avoid a premature exit from monetary easing, advising it to maintain its policy framework.

  • IMF advises BOJ to keep current monetary policy framework
  • Fund reiterates recommendations on long-term yield flexibility

The recommendation from the International Monetary Fund is to ensure that Japan’s economy continues to recover from the pandemic. The Bank of Japan should maintain its current monetary policy until inflation sustainably reaches its 2 percent target, according to the International Monetary Fund’s annual report on Japan released on Thursday. The Bank of Japan should also be ready to implement additional measures if necessary to support the economy, the report said. The IMF report acknowledges that Japan’s economy has shown signs of recovery, with increased exports and industrial production, as well as increased business and consumer sentiment. However, the report also highlights challenges facing Japan’s economy, including a shrinking population and the risk of a resurgence in Covid cases.

The Bank of Japan has taken a number of measures to support the economy during the pandemic, including negative interest rate policy and large-scale asset purchases. However, the IMF report suggests that the Bank of Japan could do more to support the economy, such as expanding its asset purchases and implementing yield curve controls to lower long-term interest rates further. The report also urges Japan to implement structural reforms to increase productivity and support growth. The IMF recommended that Japan implement measures to increase labor force participation, promote competition in product markets, and improve corporate governance. Overall, the IMF report on Japan highlights the importance of continued support for the Japanese economy as it recovers from the pandemic.



This pair, CADJPY seems to change its direction to the long. retracement on lower prices could be a great opportunity to enter a new long position with a nice win rate ratio.
95.9 and 94.8 is our main support levels.

The trend is buy, Stoch, and RSI are in the overbought area so it helps to drop the prices to a lower area and we are waiting for it.

CADJPY BUY area by Alisabbaghi on TradingView.com

EURJPY flag trade idea

EURJPY, short at higher prices

EUR/JPY braked the 142 area to the higher prices.
The further upside seems likely in the short term but it would be good to wait and take a short in higher prices around 144.5

Most retail trades are short and it would be another reason that this pair could see higher prices and change the direction at the 144-144.5 zone.
this area is a big short zone that seam was a sell block zone.
with better risk/reward you can sell this asset

short term is buy, but wait to sell it at higher prices by Alisabbaghi on TradingView.com

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