Japanese Yen Strong After Fed Announcement Disappoints Markets

The Japanese yen was extremely strong today, rallying against all of its major rivals. Market analysts explained the rally by the reaction to the monetary policy announcement from the Federal Reserve.
Experts argued that Fed’s policy statement was less dovish than markets had anticipated. And that led to a surge of risk aversion on markets, driving investors to seek safer assets.
Meanwhile, the Bank of Japan concluded its policy meeting today. The BoJ did not provide any surprises, leaving monetary policy unchanged, with the main interest rate staying at -0.1% and the size of annual asset purchases at about Â¥80 trillion to keep 10-year JGB yields at around 0%.
As for Japan’s macroeconomic data, all industries activity rose 1.9% in October from the previous month, in line with economists’ expectations. The index declined 1.0% the month before.
USD/JPY tanked from 112.47 to 111.22 as of 17:20 GMT today, trading near the lowest level since September 13. EUR/JPY declined from 127.95 to 127.41 after rising to the daily high of 128.39 earlier. GBP/JPY tumbled from 141.82 to 140.88, trading near the lowest since August 21.

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Original from: www.earnforex.com