The Japanese yen was soft today as two major central banks did not provide surprises and left their monetary policies unchanged. Absence of any shocking events made Forex traders feel more secure and reduced need for the safety of the yen, but the upheaval on Wall Street may yet return demand for the Japanese currency.
Some market analysts were thinking that the European Central Bank would cut interest rates at today’s monetary policy meeting. In reality, not only the ECB refrained from slashing borrowing costs, but also President Mario Draghi was not particularly dovish at the press-conference. The Bank of England also left interest rates and the asset-purchase program unchanged.
There is a chance for the yen to rebound as the probe of alleged currency manipulation caused an upheaval on Wall Street. For now, the currency remains weak, though, but this is not necessarily a sign of a bear trend as some form of correction could be expected after the strong rally that the yen demonstrated this year.
USD/JPY rose from 101.43 101.89 as of 18:28 GMT today. EUR/JPY advanced from 137.26 to 138.50 and GBP/JPY rallied from 165.42 to 166.42.
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