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Japanese yen’s rally continues

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The Japanese yen has moved into positive territory since the beginning of the new year. The Japan and US markets are closed today. Therefore, the Japanese yen is likely to stay calm in holiday-thinned trades. USD/JPY currently trades at 130.65, a drop of 0.34%.

BoJ is a constant focus of attention by markets

This week there are no tier-1 events in Japan, but investors will still be closely watching the surging Japanese currency. For most of 2022, the currency suffered a prolonged slide and dropped below 151 in October. This was its lowest point in 24 years. The Ministry of Finance had to intervene in currency markets. The yen has experienced a remarkable rise since then, with an average 11% increase. In December, the Bank of Japan shocked markets when it increased the yield curve band by 0.25% to 0.50%. The move sent yen sharply up and raised speculation that Bank of Japan may be considering exiting its massive stimulus programme. However, the BoJ has denied any such plans. The Bank of Japan’s next meeting will be held on January 18.Th.

What made the BoJ move so dramatic is that the markets were expecting the BoJ to remain in cruise control until BoJ Governor Kuroda’s term ends in April, after a decade at the helm of the central bank….



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