Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account

Resources

DailyFX Home / Market Alerts

Japanese Yen Rallies as BOJ Leaves Monetary Policy Unchanged

By , Currency Strategist
11 June 2013 03:34 GMT

TAKEAWAY: Bank of Japan leaves monetary policy mix unchanged > BOJ rhetoric strikes positive tone, limiting scope for near-term stimulus expansion > USDJPY Falls

The Japanese Yen rallied against its major currency counterparts – adding as much as 0.9 percent on average – after the Bank of Japan opted to keep its monetary policy stance unchanged. The statement accompanying the announcement struck a cautiously supportive tone, seemingly limiting the scope for speculation on a near-term expansion of stimulus efforts.

The central bank reiterated the now-familiar goal of expanding the money supply at a pace of ¥60-70 trillion per year and maintained existing annual asset-purchase targets for government bonds (JGBs), exchange-traded funds (ETFs), real estate investment trusts (J-REITs) and corporate paper. On the economy, policymakers cited improvements in exports and industrial production and resilience in consumption aided by an improvement in sentiment. They added that while the Japan’s economy is expected to return to a “moderate recovery path”, a high degree of uncertainty remains and noted European debt crisis and the momentum of recovery in the US as potential risks.

USD/JPY Spot – 1min Chart

Japanese_Yen_Rallies_as_BOJ_Leaves_Monetary_Policy_Unchanged_body_Picture_5.png, Japanese Yen Rallies as BOJ Leaves Monetary Policy Unchanged

Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, please CLICK HERE

New to FX? Watch this Video. For live market updates, visit the Real Time News Feed

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

11 June 2013 03:34 GMT