The Nikkei 225 index fell 0.28 percent on Friday (April 20) with small swings trend pattern during the trading session, as the BOJ (Bank of Japan) reinforced the determination over the easy monetary policy to dilute the negative external factors. Nikkei 225 Index has fallen for the third consecutive week.
The BOJ Governor Masaaki Shirakawa said Thursday (April 19), the global economy still needs stimulus from active monetary policies, but the major central banks must cancel the ultra-loose monetary policies at some point. He also warned that over-long loose monetary policies will bring drawbacks.
Turning to the Japanese monetary policy, Masaaki Shirakawa reiterated that the BOJ will continue to implement strong monetary easing policy until close to achieving the inflation target of 1%. This indicates that the central bank prepares to take further actions when necessary to support the economy.
As a matter of fact, there were several BOJ officials have made the similar remarks in support of intensifying the implementation of further easing measures. The outlook for substantial increase in liquidity support the Japanese stock market to dilute the unfavorable factors of the Spanish debt problem and the U.S. employment data.
Technically, the Nikkei 225 index is subject to the 60-day line, but there is strong support at the cross point of the 5, 10-day lines, the Nikkei 225 index may go upside on the basis of this.
As of the Friday’s market closing bell, the Nikkei 225 Index reported at 9561.36 points, down 0.28 percent.