Japanese yen is trading mixed against its major counterparts today as Forex traders continue to process the Bank of Japan announcement from the end of last week. Yen is higher against European currencies, but lower against the US dollar.
On Friday, the Bank of Japan Governor, Haruhiko Kuroda, indicated that the inflation trend in the country is improving. The output gap continues to improve, and it looks as though “Abenomics” — named after the policies of Prime Minister Shinzo Abe — are having an impact on the economy.
However, the yen’s performance has dulled somewhat. After the BOJ announcement, the yen was mostly higher, but things have changed a bit over the weekend. The yen is now down against the US dollar, even though it is higher against the euro and the UK pound.
Yen strength could be likely to continue to some degree, however, thanks in large part to the idea that an improving economy will require no more new moves to ease monetary policy from the Bank of Japan. If the Japanese economy is picking up, there is little need for more quantitative easing.
At 10:51 GMT USD/JPY is up to 119.3220 from the open at 118.8850. EUR/JPY is down to 129.0120 from the open at 129.1800. GBP/JPY is down to 180.4360 from the open at 180.4650.
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