JPY takes losses following BOJ rate decision
- Last Updated on 09 February 2012
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The Bank of Japan's widely expected decision to maintain its current economic policy triggered a largely bearish day for the Japanese yen yesterday. The USD/JPY jumped to a four-week high during European trading, while the GBP/JPY climbed well over 100 pips. Given the appetite for risk aversion among investors, the downward movement by the yen was not widely predicted by analysts.
Turning to today, yen traders will want to pay attention to US news scheduled to be released throughout the day. Analysts are predicting the indicators, particularly the Pending Home Sales number, to come in well below last month's results. If so, further risk aversion may occur could cause the yen to reverse some of today's losses.