The USD/JPY pair has strengthened this Friday against the background of the results of the December meeting of the Bank of Japan.
The Japanese yen has played quite effectively against the changes in colours in the monetary policy of the national regulator. The USD/JPY pair is now trading around 121.55, and the morning peak was 123.51.
So the Bank of Japan decided to slightly adjust its program of quantitative easing, which has been running for quite some time. Now the circulation period for the purchase of papers by the regulator will be 7-12 years against the current range of 7-10 years. The annual purchase of assets is staying the same as earlier, at 80 trillion yen. In addition, the bank plans to increase EFT acquisitions parameters - a very interesting solution, which can be very productive. It will be offered to purchase the assets and funds investing in human capital and physical capital.
The market commended these intentions as a willingness to take decisive actions, which are very necessary in Japan. It is necessary to expand the hedging instruments, which is what the BoJ is doing.
Do recall that at the end of the third quarter of 2015 the GDP of Japan added 1% after the drawdown in the second quarter by half a percentage point. Against the background of a mixed external environment the need for strong growth is increasing.
Today is a quiet day in terms of the publication of some important macroeconomic data - it is not in the calendar. The Japanese yen, however, will continue to hold on to the morning driver.
RoboForex Analytical Department
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