Wednesday, May 21, 2014

Japanese yen USD/JPY

The Japanese yen is showing little movement on Wednesday, as USD/JPY trades in the mid-101 range late in the European session. In Japan, the BOJ issued a relatively upbeat policy statement and said it would maintain current monetary policy. The Japanese current account deficit improved, but still fell short of the estimate. In the US, the Federal Reserve will release the minutes of its recent policy meeting.
There were no surprises from the Bank of Japan policy statement on Wednesday. The Bank noted that the economy continues to recover at a moderate pace, and said that monetary policy would not change. The BOJ has been purchasing 60-70 trillion yen/year in asset purchases, and this aggressive monetary stance has raised inflation and growth levels, but has severely hurt the yen, which continues to trade above the 100 level.