As the Bank of Japan announced that it would maintain its current monetary policy and did not see the need for additional stimulus, the Japanese Yen steadied in London trading after first bouncing higher. According to the BOJ Governor Kuroda, the inflation rate was nearing the central bank’s 2% target and thus there no expansion of stimulus would be needed in the near term, though he did point out that the central bank would closely monitor the inflation outlook and modify policy as and when needed.
As reported at 8:43 am (GMT) in London, the USD/JPY was trading at 119.09 Yen, a gain of 0.1%, but analysts foresee the pair trading in the 117 Yen to120 Yen range, though if the pair approaches the top end of the range they expect the BOJ to quickly dampen enthusiasm with a well-placed comment as they have done in the past. The EUR/JPY was lower at 135.8235 Yen, a loss of 0.14%.
Greek Deal Seen in the Future
Markets will refocus their attention back to the Eurozone area and specifically on the talks between the Troika and the Greek government as efforts to provide Greece with a new bailout deal remain on the front burner. Analysts believe that despite recent setbacks, a new deal will be on the table and agreed to by all parties over the next few weeks.