The Central Bank policy maker hoped that the coronavirus vaccination acceleration program will continue to support the economy situation. It can be seen from a summary meeting of the Bank of Japan or BOJ. 

That meeting was held in June and published on Monday 28 of June 2021. The BOJ representation also keep seeing the economy recovery after Japan pass the fourth wave of the COVID-19. 

In the June Meeting, the Bank of Japan maintained their monetary policy and said that the Japanese economy will get the momentum to come back. It is in line with the good progress. 

It is especially for the export recovery and domestic demand. That thing in line with the coronavirus cases which are declining in Japan and the widening global vaccination. 

The Positive Economy Cycle is Starter

The social limitation in Tokyo and other eight areas have been loosened per 20 of June. The positive economy cycle in Japan is started because of the vaccination progress. 

The vaccination is maybe not evenly yet, but so far that progress makes the global economy recovery is clearer. An analyst hoped that Japan will follow that good trend. 

The optimistic view owned by BOJ underlining that the Japan economic which depends on the export sector will get the momentum. The increasing good export demand from Japan is a catalyst. 

That may create a positive effect in moving the domestic economy in that country. Furthermore, BOJ seen that there is not any urgent reason to give the added stimulus ahead. 

The Rebound Sign and Inflation Pressure

In the other side, the Bank of Japan is also highlighting the inflation pressure and rebound signs. It is because of the demand which supports that thing. In fact, that condition has an effect. 

There is a possibility that this situation will help the increasing inflation in the second quarter of 2021. However, the policy maker in that bank stated that the inflation speed will not rise too much. 

It is because the weak inflation has been a classic problem which is faced by Japan for years. The increasing commodity price and domestic demand recovery are the supportive factors. 

In addition, that increase is also temporary. Elsewhere, the USD/JPY is also weakened. The summary release from the BOJ meeting in fact is unable to support the Yen position. 

The USD/JPY Level Position 

When this news released, the USD/JPY pair was around 110.68 or declined by 0.09 percent daily. The limited weakening of the USD was caused by the PCE inflation data release. 

That release failed to reach the expectation. The index of US dollar or DXY was slightly weakening aroynd 91.70 level in a trade happened on Monday. That was happened amidst the low volatility. 

The market participants are ready to take an action ahead some important events from the United States this week. Some factors will affect the global market situation. 

Those are started from the Fed’s representatives speech, the PMI survey result release, up to the nonfarm payroll data publication. The market participants are still waiting for that. 

The PCE Report Is Flat

Based on the data, the PCE report is flat and that was noted at the end of last week. It is because the numbers are far from the expectation. The core price increases by 0.5 percent. 

It was month-over-moth and happened on May 2021. In fact, the consensus hoped for 0.6 percent increase. However, this inflation speed is still in a high position year over year. 

That PCE core increase is now becoming 3.4% year on year on May. That was the biggest jump since 1992 and the market is still careful if the Fed will normalize their policy earlier than the schedule.