The Japanese yen advanced against other majors today even as the Bank of Japan has started its two-day policy meeting, which is likely to result in additional monetary easing.
The BoJ will likely yield to the demands of the new government that wants more aggressive actions for supporting the economy and weakening the currency. The yen did not pay heed to the expectations of quantitative easing, which usually is negative for currencies. Perhaps it is an evidence of the “buy the rumor, sell the fact” mentality. Whatever the case, the Japanese currency advances against its most-traded peers, including the pound.
USD/JPY fell from 90.07, the highest open since June 2010, to 89.43 and EUR/JPY declined from 119.89 to 118.95 as of 10:32 GMT today.
If you have any questions, comments or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.