Traders ignored the decision of the Central Bank on the interest rate which was accepted today in the Asian trading. In general, the trend of the USDJPY pair continues to develop with the advantage on the US dollar.
According to the report of the Bank of Japan, the deposit rate was maintained at -0.1% and the target yield of 10-year bonds in the region of 0%. The Bank of Japan also retained the obligation to buy bonds in the amount of 80 trillion yen per year.
The Central Bank is pleased that the companies' investments in fixed assets maintained an upward trend but they are concerned that public sector investments will not change when there is expected growth.
As for the technical picture of the USDJPY pair, the trade continues to be lateral. Now, buyers are striving for resistance at the level of 113.80, the breakthrough of which will lead to the continuation of the upward trend with the update of the highs of October this year around 114.80. I think such a position in the weakening of the Japanese yen will only benefit the plans of the Central Bank of Japan.
The New Zealand dollar grew significantly against the US after good data on New Zealand's economic growth in the third quarter of this year, which received support from construction activity.
According to the data, New Zealand's gross domestic product in the third quarter of 2017 increased by 0.6% compared with the previous quarter, while economists expected that growth in the 3rd quarter to be at 0.4%. Compared to the same period of the previous year, GDP in the third quarter grew by 2.7%.
As noted above, growth was directly related to a jump in construction activity which helped to compensate for the decline in the previous two quarters.
The British pound remains under pressure paired with the US dollar against the backdrop of data that consumer confidence in the UK declined in December this year. As before, the pressure is exerted by the situation associated with Brexit. According to the report of the research company GfK, the UK consumer confidence index fell to -13 points in December.
It became known last night that the US Congress passed a bill on tax reform, which is the largest in the last 30 years. However, it is unclear when it will be signed by US President Donald Trump. According to rumors, perhaps Trump will do it only in January next year.
As for the technical picture of the EURUSD pair, the optimism about risky assets is gradually weakening. This may lead to a downward correction in the trading instrument in the areas of 1.1855 and 1.1830.