JPY Weakens Further: Overview for October 31, 2023

USD/JPY analysis today

The USD/JPY pair is on the rise in the aftermath of the Bank of Japan’s meeting.

The Japanese yen, in partnership with the US dollar, is once again losing its strength. The current USD/JPY exchange rate is positioned at 150.11.

In today’s meeting, the Bank of Japan decided to keep the interest rate unchanged at -0.10% per annum, precisely as anticipated.

Simultaneously, the central bank announced an enhanced flexibility in its yield curve control. While the target level for the 10-year bond yield remains at around zero, they have set the upper bound at the 1% mark, acting as a crucial reference point.

The BoJ stands ready to increase stimulus measures if the economic situation demands it.

However, the market response to the Japanese regulator’s statements was underwhelming. The JPY’s exchange rate is weakening due to the substantial interest rate gap that persists between the Bank of Japan and the US Federal Reserve.

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