USD/JPY is sitting close to session lows at Y79.02 in late Tokyo trade, as the pair fell sharply in the wake of the BOJ decision to leave
policy unchanged. However, the BOJ did retain the option of an extraordinary meeting next week in the wake of the Greek election if needed. USD/JPY touched a high at Y79.51 after the Tokyo fix, with traders noting Gotobi buying of the pair. However, a sharp slide was seen after the BOJ left policy unchanged, sliding to a low at Y78.98. Also helping underpin the yen was safe-haven buying ahead of the weekend’s risk events of Greek elections and G20 meet. Traders note an unwillingness to take USD/JPY much lower for fear of Japanese intervention, although it is noted that unilateral Japanese action last happened sub-Y76.00.
EasyForexNews Research Team