Japanese Yen Heads Higher Against Other Majors

Japanese yen is heading higher against its major counterparts today, gaining ground as policymakers continue their two-day meeting.

Yen is higher today, strengthening after losing ground earlier. Bank of Japan policymakers are in the middle of a meeting, following on the heels of a dovish statement from the Federal Reserve. A statement from the BOJ is expected tonight.

Japanese yen is gaining ground, though, as Forex traders take stock of the situation. The latest news out of Japan showed an increase in machine tool orders for May, representing a year over year increase of 15 per cent.

Stocks are down in Japan with the Nikkei struggling as the yen heads higher. A higher yen is expected to weigh on exports, and it goes against the official policy of encouraging yen weakness. However, even with these considerations, many expect that the BOJ won’t make any changes to monetary policy at this time. The current spike in the yen is expected to be somewhat short-lived, and if it isn’t, policymakers might then take steps.

At 12:55 GMT USD/JPY is lower, falling to 122.6970 from the open at 123.4270. EUR/JPY is also lower, dropping to 139.8800 from the open at 139.9330. GBP/JPY is down to 195.1940 from the open at 195.4250.

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