The Japanese central bank earlier made the decision not to further stimulate the economy; Haruhiko Kuroda, the governor of the Bank of Japan, maintained a positive outlook on the country’s economic recovery. Analysts recently polled had generally anticipated that the BOJ might maintain the status quo. However, some market players had hoped that, given the disappointing data over the past several weeks, the BOJ might surprise with some additional tweaking to its monetary policy.
As reported at 11:03 am (BDT) in London, the USD/JPY dipped to 119.6130 Yen, down 0.50%; today the pair ranged from a low of 119.3950 Yen to a peak of 120.6520 Yen. The EUR/JPY was also lower at 135.2705, a loss of 0.55%; the pair ranged from 134.9976 to 136.4190 Yen.
BOJ Easing Seen in Ahead
Expectations are that the Yen is likely to be pushed higher as uncertainty persists in the global equity markets amid the concerns over China or the possibility that the Federal Reserve might soon hike interest rates. Despite the BOJ’s improved outlook, analysts are forecasting that the Japanese central bank is likely to be compelled to ease further in the next quarter or else they’ll fail to achieve their own 2% inflation target.