USDJPY has plunged pretty much recently, now it’s time to correct.
After updating its local highs, the Japanese Yen took a break against the USD. The current quote for the instrument is 103.35.
The December meeting of the Bank of Japan was over today and the interest rate remained unchanged at -0.1%. This decision was widely expected but the data on inflation published a bit later was truly disappointing.
The BoJ itself says that it requires to take a break and assess all that is happening. However, it will be quite difficult to invent something conceptually new and successful: probably, the regulator just has to take the situation as it comes to adopt inflation as a norm that can be varied. In this case, there might be new possible ways of working with such a price environment.
Seeing the damage done to the country’s economy by the coronavirus pandemic, the Bank of Japan made a decision to expand all current stimulus measures for another six months.
The Yen was significantly rising in December in response to the declining USD rate and that wasn’t good – the Japanese exporters weren’t happy at all.
Orgin: RoboForex
