No Stimulus from BoJ, Yen Higher

The Japanese yen rallied today after the Bank of Japan left its monetary policy unchanged, refraining from adding monetary accommodation. Absence of stimulating measures is usually positive for a currency, and so it was in this case.
The BoJ left interest rates near zero and the size of annual asset purchases at ¥60–70 trillion, in line with market expectations. The central bank said in the statement that “Japan’s economy has continued to recover moderately as a trend” and “Japan’s economy is expected to continue a moderate recovery as a trend, while it will be affected by the subsequent decline in demand following the front-loaded increase prior to the consumption tax hike”. All in all, it looks like the bank is certain that it is able to reach its 2 percent inflation goal and will likely not act until reaches the target.
USD/JPY fell from 101.31 to 101.03, reaching the low of 100.82 intraday, and EUR/JPY dropped from 138.80 to 138.19 as of 12:17 GMT today.

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