USD/JPY volatile around 124.00 on BOJ’s second consecutive day of intervention

Dhwani Mehta FXStreet

The Bank of Japan (BOJ) conducted an unlimited amount of bond-buying of 10-year Japanese Government Bonds (JGB) at 0.25% on Tuesday to defend the yield cap.

The Japanese central bank’s second consecutive day of the intervention is seen as a desperate measure to stem the advance in the yields.

The BOJ made two consecutive and unlimited bond-buying offers for the first time ever on Monday, as it pledged to conduct the operation for the first four days of this week.

Market reaction

USD/JPY remained volatile around 124.00 on the above announcement. The pair is now trading at 123.80, down 0.11% on the day, having hit daily highs at 124.31 in the last hour.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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