Japanese yen is gaining ground today, heading higher against most of its major counterparts. The latest expectations for stimulus have changed, and that means that the yen is benefitting from the idea that actual stimulus won’t involve as much as originally expected.
Forex traders and analysts have been expecting Japanese officials to reveal another stimulus package following Prime Minister Shinzo Abe‘s recent victory. Speculation about the types of stimulus and the amounts possible have been weighing on the yen lately.
Today, however, the yen is on the rise as new expectations for stimulus circulate through the market. If the Bank of Japan doesn’t ease as much as originally thought, there is likely more strength for the yen. Some had estimated that the stimulus package would total close to 20 trillion yen, but the new figure is closer to 6 trillion.
The Japanese economy has been struggling lately, and more stimulus will be needed. It just appears that the amount of stimulus will be a less than originally planned for by some analysts and others.
At 12:19 GMT USD/JPY is lower, falling to 104.74 from the open at 105.81. EUR/JPY is also down, dropping to 114.89 from the open at 116.32. GBP/JPY is down to 137.38 from the open at 139.01.
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