Opened at Y77.57 after recovering from lows of Y77.40 in NY and came under pressure as EUR/JPY sales emerged on the back of downgrade/negative outlook news from Moody’s over 9 European sovereigns. The USD fell through the NY lows to Y77.36 before recovering to Y77.60 ahead of the BOJ announcement. The central bank then announced that rates would remain on hold but that it was increasing asset buying by a further Y10 trln to Y65trln which would be entirely for JGB’s. The BOJ also announced a policy target for consumer inflation of 1%, and stated that uncertainty was still high due to yen strength and ongoing EU issues, leaving economic assessment unchanged. The USD pushed higher through layers of offers up to Y77.85 then tripped stops to a high of Y77.96 before later settling around Y77.85/90. EUR/JPY made a strong recovery from early lows of Y101.82 to Y102.63 , before easing to Y102.50. GBP/JPY picked up from Y121.68 to Y122.51 and AUD/JPY recovered from Y82.76 to Y83.34.
EasyForexNews Research Team