Fourth Weekly Gain for Yen

The Japanese yen gained this week as policy makers disappointed those Forex market participants who counted on continuous aggressive easing from the Bank of Japan. It was the fourth consecutive weekly gain.

The BoJ frustrated traders, who hoped for additional stimulus, as the bank left its monetary policy unchanged this week. Moreover, on last month’s meeting some policy makers suggested that the term for quantitative easing should be limited. It was definitely not the actions investors have hoped for.

The Reserve Bank of New Zealand left its policy stable too. Another important issue this week was the discussion of European Central Bank’s actions by the German court, though no conclusive decision has been made yet.

USD/JPY slumped from 97.82 to 94.33 this week. EUR/JPY tumbled from 129.05 to 125.88. GBP/JPY dropped from 151.79 to 148.14. This was the lowest weekly closes since March.

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