Breaking: USD/JPY rips to highest levels since 2016 on BoJ announcement

FXStreet Team FXStreet

The price of USD/JPY has rallied hard in the last few moments as the Bank of Japan will offer to buy an unlimited amount of 10-year JGBs at 0.25%:

USD/JPY M10 chart

The unintended consequences of the Bank of Japan (BoJ)’s Yield Curve Control (YCC) has become increasingly apparent this month and the yen has fallen some 7.25% vs. the greenback since the start of March.

Last month, the Bank of Japan announced it would intervene in the JGB market to protect the 0.25% ceiling on the 10-year JGB yields as they were being pushed up by higher US Treasury yields.

Additionally, since the Fed began to tighten earlier this month last, the wider interest rate differential between the US and Japan has weighed on the Yen significantly.

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FXStreet Team

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