Release Explanation: This report is supplied by the Bank of Japan. The Monetary Base includes all banknotes and coins in circulation plus all currency held as deposits by the Bank of Japan. As an official measure of the Japanese money supply, the Monetary Base will show the immediate impacts of monetary policy actions and can give an indication into the future direction of inflation. An expansion in the monetary base is generally inflationary while a decline will likely have the opposite effect.
Trade Desk Thoughts: The M2 money stock for Japan has increased by 1.8 percent year over year in December. This figure is slightly higher than the 1.7 percent which was forecasted and is up from the November figure of 1.8 percent. The M3 money supply grew 0.8 percent annually in December which is above the 0.6 percent that was expected as well as above the 0.7 percent seen in November.
Forex Technical Reaction: The Japanese yen has not reacted significantly to either release this evening. Currently, the pair is finding resistance near the neutral LFB pivot point at the 89.45 level.