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Home / Analytics / Forex analysis & forecasts / Forex Fundamental analysis / The Yen has gone up dramatically. Overview for 28.04.2016
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The Yen has gone up dramatically. Overview for 28.04.2016

The USD/JPY pair is trading near April’s lows after another meeting of the BoJ.

The Japanese Yen strengthened on Thursday faster than anyone expected. In the afternoon, the USD/JPY pair is trading near 108.22; the daily decrease is 3%.

Another meeting of the BoJ was over today. Nothing sensational happened, and this is why the Yen’s reaction was so furious. Deposit rate in the Bank of Japan remained at -0.1%, the motivation program didn’t change as well – it’s 80 trillion Yen per year. Changes affected only expectations: in its comments, the BoJ changed forecasts on the inflation; the regulator expects it to reach 2% in 2017.

However, everyone expected that during this exactly meeting the Japanese regulator would expand the motivation program in order to reach the inflation target within specified time. Differences between plans and reality made the price grow.

Such leap in the Japanese Yen has a negative influence for Japan and its exporting companies, because their output is getting less competitive. Influx of funds into treasury from taxes is reducing, and this is also not good.

It looks like all Japanese news depend on the CPI. Today’s statistics showed that the CPI in Japan in March decreased by 0.3% y/y. Average expectations predicted that the core inflation would fall up to 0.2%. Excluding energy commodities and food prices, the inflation in Japan increased by 0.7% y/y.
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