The Bank of Japan will utilize 2.8 trillion yen in an immediate action to lower Japanese bond yields which have risen recently, despite the BOJ’s ambitious bond buying plans. Money has been moving from Japanese bonds to Japanese stocks and to various investments overseas.
This news pushed USD/JPY above 102.40 – a level which temporarily capped it beforehand. The pair touched the 102.60 level before retreating.
Earlier, the governor of the BOJ, Kuroda, said that a weaker yen could lead to rises in prices, but that the BOJ is not trying to temporarily raise prices. Regarding stock prices (the Nikkei crossed the 15,000 level), Kuroda sayid he doesn’t see a bubble there. At least not yet.
For more, see the USD to JPY forecast and the live chart here:
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Where will USD/JPY stop? At 105? The dollar is strong across the board, with GBP/USD struggling with 1.52, AUD/USD extending its losses under 0.99, USD/CAD rising above 1.02 and EUR/USD slipping under 1.29.
The main reason for the euro’s fall is the weak German GDP figure.
