The Japanese yen recovered on Monday, but the prospect of the Bank of Japan keeping its ultra-loose monetary policy in January could limit any further gains.
The Bank of Japan (BoJ) kept its dovish stance and left monetary policy unchanged. As a result, the USD/JPY pushed higher.
After Monday’s uncertainty, markets remain volatile early Tuesday with investors being cautious ahead of this week’s key central bank meetings.
The Bank of Japan has released its April meeting minutes, with many officials reiterating the central bank’s intentions to continue with its ultra-loose monetary policy. Central bank Governor Kazuo Ueda said on Wednesday that “The Bank of Japan (BoJ) will patiently maintain an easy monetary policy to stably and sustainably achieve the 2% price target…