Yen on Edge as BoJ Policy in Focus
London: 29 March 2024 (TraderMade): The Japanese Yen (JPY) is in a precarious position as the first quarter of 2024 draws to a close. With most global markets closed for Good Friday, trading is expected to be thin, but that could also lead to unexpected volatility.
BoJ in Focus Amid Weak Inflation
Market participants need to keep an eye on signs of intervention from Japanese authorities after the Bank of Japan (BoJ) maintained its dovish monetary policy. This stance, while supportive of economic growth, has contributed to the Yen's weakness against the US Dollar, which currently sits near a 34-year low.
Key Data to Impact Yen Performance
Several key data points from Japan, including Tokyo inflation, retail sales, industrial production, and unemployment figures, are due for release today. A soft inflation reading coupled with strong US inflation data could further weaken the Yen and test the BoJ's resolve.
Will Japan Take Action?
Prime Minister Kishida has signaled the government's willingness to address "excessive" currency moves, and Finance Minister Suzuki has reiterated their close monitoring of the situation. Whether Japan intervenes in the market to prop up the Yen remains to be seen, but traders will be on high alert for any such action.
