The Japanese yen rallied yesterday on speculations that the Bank of Japan will refrain from changing its monetary policy at this week’s meeting. While the currency retreated a bit today, it remains relatively strong.
The BoJ started its two-day policy meeting today and will announce its decision tomorrow. It is expected that the central bank will not expand its stimulus program. If this is the case than the yen should gain even more strength.
Japanese policy makers made many attempts to bolster the nation’s economy with expansive stimulus measures. Latest economic indicators suggest that such goal was achieved, meaning that additional monetary accommodation is not required.
USD/JPY traded at 102.10 as of 3:19 GMT today after falling from 102.35 to 102.07 yesterday. EUR/JPY was at about 138.30 on today’s trading session following the drop from 138.63 to 138.11 on the previous trading session. GBP/JPY was down from 171.49 to 171.35 before trading near 171.55.
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