Yen is paring some of its earlier gains against its major counterparts as Forex traders prepare for the first Bank of Japan meeting with Haruhiko Kuroda. A bit of risk appetite is also helping other currencies against the yen today.
Earlier, yen saw some solid gains as Forex traders made safe haven bets. With eurozone unemployment reaching a record high, and with fears of a triple-dip recession in the United Kingdom still a reality, yen was heading higher.
While the yen is still higher on the day against its European counterparts, some of those gains have been pared. Focus is shifting to the upcoming Bank of Japan meeting — the first with new head Haruhiko Kuroda in charge.
Every since Shinzo Abe became prime minister, he has been talking about aggressive easing for the yen. Now, with a BOJ head who agrees with him, the expectation is the yen will see weakness as more stimulus is added to the Japanese economy.
Also turning things around a little bit today is the fact there is a bit of risk appetite right now as US equities gain a little ground as the session draws to a close.
At 19:28 GMT USD/JPY is up to 93.4100 from the open at 93.2535. EUR/JPY is down to 119.6950 from the open at 119.8105. GBP/JPY is down to 141.0800 from the open at 141.9800.
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