Now: Yen beat down, Yield Skyrocket
Yen on pressure as the global yield on keep rising upward as the interest rate from the respective central bank already hike or will hike the interest in the future. BoJ on the other hand still unable to hike the rate as the inflation rate is still far from the target area.
This situation creates a major disparity and yen become less appeal for investment. The most noticeable movement are for EURJPY and GBPJPY and of course all other G10 currency pair against JPY. Yen weakness become a headache for Japan but unless BoJ move from the ultra-dovish policy, the current weakness and vulnerability will stay.
According to the statement from the BoJ Governor earlier, Haruhiko Kuroda, BoJ by anyway isn’t looking for any change in its policy any time soon in which add more weakness to the Yen currency.
20 April 2022