Bank of Japan

The Japanese Yen fell to another new millenium low on Thursday after the Bank of Japan (BoJ) elected to continue with a longstanding set of monetary policies and as the Dollar strengthened following September's interest rate decision and forecast update from the Federal Reserve (Fed).

The Japanese Yen was slipping again in the penultimate session of the week but recent speculation about the prospect of direct intervention by the Bank of Japan (BoJ) to support the currency is not the only reason why the Yen may already have bottomed and could be on the cusp of a spectacular recovery. 

The Japanese Yen's annual loss reached extreme levels at times this week, drawing increasingly stern protests from the Ministry of Finance, but there is a danger that market speculators driving this are unwittingly engaging themselves in a game of Russian roulette with lots of loaded chambers in the pistol. 

The Japanese Yen tumbled back near a new millennium low to end the week in losses that prompted some analysts to contemplate the rising risk of an official intervention as financial markets besieged the Bank of Japan (BoJ) for its commitment to a long and ongoing monetary policy process.

The Japanese Yen fell toward levels rarely seen thus far in the new millennium this week after the Bank of Japan (BoJ) appeared to egg on a bearish currency market by doubling down on its commitment to pursuing a long-elusive inflation target through the use of stimulatory monetary policy.

The Yen reached one month highs against the Dollar this week but a brightening outlook for the Japanese economy and currency could see it imposing a further burden on USD/JPY, GBP/JPY and others during the weeks and months ahead.

The Japanese Yen tumbled to a fresh 20-year low after the Bank of Japan (BoJ) stayed its stimulative monetary policy course, eliciting losses that were partially echoed by the Chinese Renminbi and which likely helped to lift the U.S. Dollar broadly during the penultimate session of the week.

The Yen tumbled alongside many other currencies in the midweek session but faces additional risks stemming from a looming Bank of Japan (BoJ) monetary policy decision that many suspect will cement in place a vast gulf between Japanese and U.S. government bond yields.

The Japanese Yen outperformed other major currencies during the midweek session but the risk of official intervention to curb any fresh or future losses remained elevated and in any such scenario there would likely be much more downside seen in the CHF/JPY rate than in the USD/JPY pair. 

The Japanese Yen tumbled during the final session of the week when the Dollar rose sharply alongside interest rate differentials and as stock markets advanced broadly amid an evident improvement in investor risk appetite, leading some to reset their sights on the 125 level of USD/JPY.

The Japanese Yen has fallen heavily amid a growing gulf between monetary policies at the Bank of Japan (BoJ) and Federal Reserve (Fed) but USD/JPY could rise further still during the months ahead, according to Mizuho’s FX sales desk, with implications for GBP/JPY.

The Japanese Yen was a contender for the top spot among currencies this week by Wednesday having reached oversold levels that have helped put the Sterling-Yen exchange rate onto its back foot, although multiple analysts suggest GBP/JPY still has scope to fall further in the short-term.  

The Japanese Yen outperformed on Friday, rising against all major currencies but especially those within its 'funding currency' peer group, after the Bank of Japan (BoJ) appeared to covet higher bond yields through what may be eligible for description as an interest rate rise in diguise.

The Pound-to-Yen exchange rate little changed On Wednesday after having stalled near to three-year highs earlier this week, leaving the British currency's rally and GBP/JPY's outlook hinged on whether central banks are able to deliver a trifecta of supportive policy announcements ahead of the weekend. 

The Japanese Yen advanced against most major currencies on Friday as the Dollar rose amid faltering investor risk appetite, and after the Bank of Japan (BoJ) was sighted assembling a rifle and possibly preparing to enter into a currency war in which warning shots have effectively already been fired. 

The Swiss Franc was universally stronger on Friday if not for an unchanged USD/CHF that is at the centre of a looming confrontation between Bern and Washington, which is itself a symptom of broader global problem and a warning of growing risks that lurk along path ahead for other currencies.

The Yen weakened Tuesday as investors digested remarks of Chief Cabinet Secretary and incoming Prime Minister Yoshihide Suga, whose imminent ascent Sōri Daijin Kantei is weighing on the Japanese currency due to lingering uncertainty about leadership as well as the fiscal and monetary policy outlook for the world’s third largest economy. 

The Yen fell Wednesday after the Bank of Japan (BoJ) slashed its inflation forecasts for a fourth consecutive time, undermining the case for a withdrawal of monetary stimulus over the coming quarters and prompting traders to dump the currency by the bucket load. 

Bank of Japan reigns in 10-year bond yields following a rapid rise over recent days. Move suggests ongoing tethering could plant floor below USD/JPY.