Global macro overview for 07/03/2016:
Bank of Japan Governor Haruhiko Kuroda has recently said that the central bank will study the effects of negative interest rates on the world's third biggest economy, indicating that no immediate expansion of stimulus was planned. His outlook for the economic growth is still positive and the recently introduced negative interest rate has a positive impact on the economy as well. Nevertheless, he reiterated that BoJ is still ready to ease monetary policy again to reach the 2% inflation target. BoJ can do this by buying more assets or by cutting the rates even further. In conclusion, the BoJ is currently closely watching the results of the negative rate cut on its own economy and expects very powerful stimulus effect mainly by encouraging firms to boost investment in Japan.
The technical picture of USD/JPY did not changed much on a daily chart as the pair is still trading inside the congestion zone between the levels of 115.00 - 111.00. The main resistance for bulls is at the level of 116.16. As long as this level is not violated, bears are in control of this market.