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.
The Japanese yen rose temporarily yesterday against the US dollar, as rumours about a possible intervention in the FX market spread.
After Monday’s uncertainty, markets remain volatile early Tuesday with investors being cautious ahead of this week’s key central bank meetings.
In this article, we will focus on the second most traded currency pair in the world, the USD/JPY pair.
On Tuesday, the Japanese yen weakened against the US dollar after the new Governor of the Bank of Japan (BoJ) indicated a cautious stance