Japanese Yen Strengthens on BOJ Expectations
Even though the Bank of Japan is in the midst of a rather large easing operation, the yen is finding strength today. This is due, in large part, to the fact that many Forex traders expect that, rather than expanding the easing efforts, the BOJ will keep things the same.
Yen is gaining against all of its major counterparts today, thanks in large part to the fact that the Bank of Japan is expected to stay the course on its easing efforts. Tomorrow, the BOJ is set to make a policy announcement, and many think that there will be no change in the current status.
Even though the BOJ is in the midst of an easing program, Haruhiko Kuroda and the rest of the BOJ policymakers didn’t expand the program last month. And, tomorrow, there are expectations that the program will be left alone again. Recent Japanese economic data indicates some improvement, so right now easing isn’t necessary.
This lack of further imposing weakness on the yen is resulting in gains for the Asian currency today. However, more weakness could be seen down the road if the BOJ deems it necessary to add more stimulus.
At 12:59 GMT USD/JPY is down to 100.3700 from the open at 101.1345. EUR/JPY is down to 128.6255 from the open at 129.3050. GBP/JPY is down to 149.2840 from the open at 150.3950.
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