Yen Softer as BoJ Decision Looms Today

The Japanese Yen strayed close to a 4-month trough against the U.S. Dollar as a Bank of Japan monetary decision looms, and there is near certainty among traders that the Bank of Japan will provide more stimulus, with estimates beginning at around 10 trillion Japanese Yen and going as much as 20 trillion Yen. The BoJ has been known to undershoot expectations, however. As reported at 12:03 pm (JST) in Tokyo, the USD/JPY pair was trading at 79.80 Yen, close to the Friday high of 80.38 Yen while support is pegged at 79.20 – 79.25 Yen level.

Meanwhile, the EUR/USD pair was trading at $1.2903, near mid-range of Monday’s tight trading band of $1.2885 and $1.2994 which came during subdued trading as a result of weather-closed New York markets. Spain’s hesitancy to request official bailout assistance continues to keep the Euro under pressure; the Prime Minister told reporters yesterday that he would seek help when it is in the best interests of the country. It was reported that Spain’s retail sales fell at a pace not seen before which further darkened the country’s outlook. Analysts don’t see any respite from the suffering economy, and don’t believe that a minimal drop in bond yields would help solve anything.