Japanese yen is higher across the board today, gaining as Forex traders turn to safe haven in the wake of second thoughts about the Cyprus bailout deal. However, the ability of the yen to sustain its gains is in doubt. The first BOJ meeting with Haruhiko Kuroda is coming up, and many are waiting to see what he delivers.
Earlier today, the last-minute Cyprus bailout deal caused a bit of a stir and boosted riskier currencies. However, many seem to be having second thoughts about the situation. While the bailout deal will possibly keep Cyprus from exiting the eurozone, there are questions now being raised about the “save the euro at all costs” approach.
The new situation is boosting the yen as a safe haven choice, and the Asian currency is heading higher. But that could change in the relatively near future. The Bank of Japan is close to holding its first policy meeting with Haruhiko Kuroda soon, and many Forex traders are interested in seeing whether he delivers when it comes to aggressive easing.
If the BOJ does adopt a more aggressive stimulus policy, then the yen is likely to weaken.
At 15:51 GMT USD/JPY is down to 94.3800 from the open at 94.5150. EUR/JPY is down to 121.6140 from the open at 122.5050. GBP/JPY is down to 143.3175 from the open at 13.9650.
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