JPY: enveloped in interventions. Overview for 21.12.2022

December 21, 2022

By RoboForex.com

The Japanese yen against the US dollar remains at its four-month peaks. The current quote is 132.00.

The BoJ decided to gain more control over the bond yield, and this decision will be affecting the market for quite long. It corrected long-term interest rates, giving them more space to grow than previously. This mechanism is meant to smooth out the negative consequences of the ultra-soft credit and monetary policy of the regulator and lengthy monetary stimulation.

At the Japanese government level, it has already been announced that this decision of the BoJ means neither cancelling nor giving up the soft credit and monetary policy.

Today the BoJ has announced an extraordinary purchase of bonds for 200 billion yen. 100 billion yen will be spent on 3 to 5 year bonds and 100 billion yen more – on 5 to 10 year bonds.

For the JPY, all these events are positive.


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Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

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