Yen Climbs Against Most Peers Before BOJ Meets; Aussie Declines

The yen rose against most of its major peers before the Bank of Japan (8301) starts a two-day meeting tomorrow as investors weighed whether it will follow the Federal Reserve in expanding monetary easing.

The euro snapped a four-day advance versus the yen before a German report tomorrow that may show investor confidence remains weak in the region’s biggest economy. Australia’s dollar, known as the Aussie, dropped as territorial and trade disputes involving China damped risk appetite among investors.

“What the Fed has done increases the pressure that was already evident on the Bank of Japan politically to take further action against yen strength,” said Ray Attrill, global co-head of foreign- exchange strategy at National Australia Bank Ltd. in Sydney. If the BOJ meeting “passes off without any new policy initiatives on Wednesday, then I would expect to see dollar-yen probably back down to the lows that we saw last week.”

via Bloomberg

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Stuart McPhee

Stuart McPhee

Senior Currency Technical Analyst at Market Pulse
Stuart McPhee has nearly 20 years’ experience as a private trader and he specializes in technical market analysis of major currency pairs. He is the author of several bestselling trading books, most recently the fourth edition of his popular book “Trading in a Nutshell” (John Wiley), and he contributes articles to daily newsletters and blogs. He produces articles and videos on the how-tos of technical trading. Living in Melbourne, Australia, Stuart speaks at conferences and events worldwide.
Stuart McPhee