The Japanese Yen edged higher versus the US Dollar today as investors’ uncertainty as to the “power” of the Bank of Japan’s collective stimulus efforts take greater hold. According to analysts, the bottom line is that FX traders are well aware that the BOJ is out of tricks and that nothing but extraordinary efforts would effectively depreciate the Yen to the extent that the BOJ and the Japanese government would like to see. The BOJ’s policy makers meet tomorrow to discuss what, if any, measures can be taken to stimulate a clearly stagnant economy.
As reported at 10:38 am (BST) in London, the USD/JPY was trading at 101.72 Yen, up 0.12%; the pair has ranged from a trough of 101.5200 Yen to a session peak of 102.0600 Yen. Over the past year, the Yen has risen some 20% against the greenback. The EUR/JPY was lower at 113.8275 Yen, a loss of 0.02%; the pair ranged from 113.5800 Yen to 114.00 Yen in today’s trading session.
Fed Seen Maintaining Status Quo
The Federal Reserve Bank is also preparing for its policy decision. The consensus now is that the Fed will most likely maintain the status quo as regards interest rates. CME FedWatch says that only 12% of traders are pricing in a rate increase. What will be relevant will be the press conference which follows the announcement, which will be scrutinized for clues as to the timing of a rate adjustment.