The Japanese yen fell at the start of today’s session as traders are expecting another intervention from the Bank of Japan. The currency reduced its losses by now and may yet resume its rally.
The BoJ will conduct its policy meeting next week and it is a wide-held belief that the bank will introduce additional stimulus as a measure to bolster the economy. The central bank was speaking previously about aggressive actions and there is no reason for it to back off now. The macroeconomic data still suggests that Japan’s economy desperately needs help and the government was calling for the BoJ to do what it can for aiding the country.
Previously, the yen was rallying on speculations that policy makers would pause their attempts to weaken the currency. Some politicians were worried that excessive weakness of the yen may hurt rather than help the economy.
USD/JPY rose from 88.36 to 88.46 after touching 88.78 and EUR/JPY climbed from 117.42 to 118.16 before trading at 117.64 as of 3:05 GMT today. GBP/JPY advanced from 141.43 to 142.18 before retreating to 141.52.
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