Breaking: USD/JPY leaps above 134.00 as BOJ keeps policy unchanged

FXStreet Team FXStreet

The Bank of Japan (BOJ) monetary policy board concluded its 2-day June policy review meeting on Friday and decided to leave its monetary policy settings unchanged, holding rates at -10bps while maintaining 10yr JGB yield target at 0.00%.

The BOJ vote was 8 to 1, leaving its pledge to buy JGBs unchanged so that its holdings increase at an annual pace of around 80 trln yen.

BOJ left its forward guidance on interest rates and policy bias unchanged, citing that it expects short- and long-term policy rates to remain at 'present or lower' levels.

Market reaction

The yen was smashed by the BOJ announcement, driving the USD/JPY pair through the 134.00 level. The pair was last seen trading up 1.58% on the day at 134.25.

About BOJ Interest Rate Decision

BoJ Interest Rate Decision is announced by the Bank of Japan. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the JPY. Likewise, if the BoJ has a dovish view on the Japanese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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