Gold and Silver Not Glittering Against the JPY

Gold and Silver Not Glittering Against the JPY

Deception today as the Bank of Japan failed to deliver its part of the "big bazooka" by a new rate cut or significantly increase the size or extension of the timetable for their quantitative easing program. The only crumb that was thrown on the markets was an increase in the ETF purchase program and increased funding facility to USD Japanese Corporates.

More surprisingly, they kept their schedule up to hit their 2% inflation target in 2017 really rather interesting when Japan CPI figures came to an asthmatic -0.4% this morning

* (JP) JAPAN NATIONAL June CPI Y / Y :. -0.4% -0.4% V E; ICC EX FRESH FOOD (CORE) Y / Y: -0.5% (3 years low) V -0.4% E - CPI excluding food and energy (core-core) Y / Y: 0 4% (1 -Year down) v 0.5% e - Source TradeTheNews.com

Some of the comments of the Governor Kuroda seems somewhat contradictory to the decision of the Bank of Japan

BOJ GOV Kuroda .: BOJ POLICY WILL EXAMINE WITH REGARD TO QUESTION NECESSARY FUTURE TO MEET 2 PCT TARGET PRICE
BOJ GOV Kuroda: WRONG TO THINK We join IMPORTANCE LESS quantitative easing
source: Reuters s

My view of this result is that the BoJ will send a signal that we are reaching the limits of monetary policy for the moment, and they want to keep their powder dry. On the contrary, in the future, fiscal policy will do more heavy lifting. Tuesday cabinet meeting will become more important than the details of the supplementary budget will be unveiled governments. Critical to this will be the amount of new spending between the overall package estimated at 28Tn Yen (USD 265 bio).

USD / JPY price action since early this morning was ugly, to say the least. With 100 points moves to the vapors of the extremely thin liquidity pre- Bank of Japan. USD / JPY fell from 105.20 to 103.30 in a heartbeat early this morning before recovering to 104.60. Things are not much better job ad, with USD / JPY falling in the area of ​​105 to 102.70 before rebounding to 103.50. Positioning seems to be very light now in JPY, which has exacerbated the moves.

The ball is really in the court of governments now with disappointment potentially exacerbate the downward pressure to USD / JPY. The daily chart is in particularly heavy research. I not that USD? JPY failed at the bottom of the Ichimoku cloud daily four times in the last eight days. (Circled area) intra-day resistance should be around 104.00 now with the support at the bottom of the previous day around 102.40.

XAUJPY and XAGJPY

Neither picture looks pink run in the end of the session. Both have double tops in the last three days and are closing on their lows for the session in Asia.

I note that on the OANDA Long / Short Ratios position XAGUSD XAUUSD and both remain in the top four of the longest positioning. It will be important to watch the end of New York in two crosses tonight for further evidence of the downward pressure on Monday.

XAU / JPY Strength 141276 and 138100 support. A daily close below here, in particular, set up a test 137000 moving average at 100 days.

XAG / JPY resistance is triple top in 2152 and 2055 support.

Nikkei

Nikkei was sold hard today to 1.8% in a step prior to a rapid recovery in the logoff. It seems that the comments of ETF Kuroda have supported late in the index

BOJ GOV Kuroda :.
INCREASED PURCHASES ETF is not intended to support SHARE PRICES
BELIEVE PURCHASES ETF will not distort market functioning
source: Reuters

the daily chart shows a small peak at the base of the daily cloud at 10 before Kuroda led to rebound 16470. it is 100 days on average and the mobile was low in three of the last four sessions. A daily close below would not be a good sign.

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