Here is what I want to see going into the Japanese statement on September 20th. I am taking the Bank of Japan's approach and getting inside their head. I want to hear "negative interest rates as a primary tool," whether it will be implemented NOW or LATER. I don't care. As long as they say it, I am happy. You may hear on Bloomberg the term N.I.R.P (Negative Interest Rate Policy for short). They don't need to implement more Q.E., that would further destroy them; however, they bank of Japan mentioned that had global factors been in their control it would have worked; but global factors are beyond their control.
Japanese Negative Interest Rates:
Again, I am pounding the table: Watch for the Bank of Japan to become more focused on a NIRP (forget Q.E.).
I want Japanese . They have none. So far, Abe has maintain the 2% level as a target level in a 2 year horizon for . Now, if Abe is not so smart, then he would say, "Ok, I change m mind, we are lowering our target below 2%." All hell would break loose on the USDJPY pair and it will fall like a rock. NO! It will fall like a meteorite.
I want them to tell us that they will maintain that 2% target in general.
that's about it for Japan.
For the USA:
I don't care if Yellen raising rates in September, as long as she stays hawkish for December and let's us know that a hike is due this year. Then, I will be happy.
Alright, it is late. I am not going to be day trading this week, but just watching for those two central banks and rumors that may leak out. Good night New York! Good night World!