It’s time to prepare for the upcoming BoJ Interest Rate Decision. The BoJ quite often proves analysts forecasts wrong. Be careful.
As with all Central Bank Interest Rate Decisions, there is always a risk of massive volatility spikes.
On Dec 18th 2015 The consensus for The BoJ was they’d reduce rates from 0.1% to 0.0%. The consensus was wrong and The BoJ kept rates the same. Then on the following decision on Jan 29th 2016, the consensus was again that The BoJ would reduce rates to 0.0%.
What did The BoJ do? They reduced them to -0.1%. On that day the USDJPY rallied from 118.8 to 121.1, an increase of 1.95%.
The BoJ Interest Rate has remained at -0.1% since then. Analysts have forecast changes to the rate but The BoJ has remained firm keeping rates the same.
Interest Rate Decisions always carry the potential for colossal volatility spikes and should be considered a hazardous time to trade.
Are you a news trader?
Or maybe a breakout trader?
If you plan to trade The BoJ Interest Rate Decision, Tweet us how you plan to tackle the volatility storm should it surface!
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Content Disclaimer: The contents of this video (and all other videos by the presenter) are for educational purposes only, and are not to be construed as financial and/or investment advice.