The yen weakened to trade at 114.14 to the dollar at 11:40 a.m. HK/SIN. The currency had initially traded at 113.88 yen to the dollar immediately after the news, compared with levels around 113.96 seen before.
“A surprising pivot by the BOJ has policy divergence between the U.S. and Japan back to the fore … It’s hard not to remain constructive on the dollar/yen given the divergence narrative and we could see the dollar/yen push higher early this week,” OANDA senior trader Stephen Innes said in a Monday morning note.
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