The Japanese yen rallied to multi-year highs against its major peers after the Bank of Japan made no changes to its monetary policy.
The BoJ made a decision not to expand its already substantial monetary stimulus. With the policy meeting out of the way and not easing, traders now feel safe buying the currency. Japanese policy makers are certainly unhappy with the yen’s rally, and this means that some sort of easing is still possible in the near future, perhaps as soon as July.
USD/JPY dropped 1.7% from 106.01 to 104.25 as of 10:09 GMT today, and its daily low of 103.60 was the lowest since August 2014. EUR/JPY sank 2%, touching the weakest rate since January 2013.
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