April 28, 2022 - 01:06 PM 266 views
For the first time in 20 years,
the USD/JPY pair has accelerated the bull points and jumped above 130.00.
The drop in the yen
currency has prepared the Bank of Japan (BOJ) to speed up things. The BOJ
tightened its ultra-loose monetary policy and increased the purchase of bonds
to double times.
The BOJ has left the
important policy settings unadjusted but has taken a pledge to buy unlimited
bonds at fixed prices on each business day. This is to preserve the 0.25% bond
cap on 10-year old Japanese government bonds (JGB).
The BOJ's dovish
approach has expanded the yield disparity between the US and Japan, as the Fed
remains on course to hike rates again in May and June.