Japanese yen is heading higher today, performing well across the board following the latest Bank of Japan announcement.
Yen is getting a boost from the fact that the Bank of Japan is not adding any particulars to its plan for economic stimulus. The announcement today didn’t offer anything new. The result, in this slightly risk averse environment, is that the yen is in demand as a safe haven.
Haruhiko Kuroda, the new BOJ head, is known for his aggressive view on easing, and he showed it shortly after taking over the BOJ. However, there won’t be any additional monetary easing measures right now, and that has Forex traders clambering for the yen.
The Forex forecast for the Japanese yen might be a different matter, though. If the BOJ feels it necessary, we’ve already seen that it isn’t afraid to intervene, and if the Japanese economy doesn’t get the stimulus it needs, more easing could be on the way. For now, though, the yen is in high demand, and the best performer of the day.
At 13:05 GMT USD/JPY is down to 98.3110 from the open at 99.2615. EUR/JPY is down to 127.9335 from the open at 129.1450. GBP/JPY is down to 152.1300 from the open at 153.1650.
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