The Japanese yen gained today as worries about the situation in Europe overshadowed the talks of Bank of Japan Governor Haruhiko Kuroda about monetary easing and weakening the currency.
Kuroda was speaking today to the upper house lawmakers. Earlier this week, he told the lower house that he keeps the target of 2 percent inflation. Such talks did not affect the currency much.
The reason for absence of reaction from the yen may be that an intervention is just an old story. Everybody knows that the BoJ is going to weaken the currency and this is priced in. The situation with Cyprus (and now in Italy yet again) currently is more important to traders. And as the situation does not look pretty, market participants pay more attention to the role of the yen as a safe haven that to the threat of an intervention.
USD/JPY fell from 94.43 to 94.10 as of 6:06 GMT today. EUR/JPY went down from 120.68 to 120.37 and GBP/JPY declined from 142.85 to 142.44.
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