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Forex pairs in this Article » USD/JPY (Barcelona) - Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that the US dollar has continued to grind higher versus the yen with market participants correctly anticipating a widening divergence in monetary policy outlook between the Federal Reserve and the Bank of Japan.

Key Quotes

“Today, the BOJ announced an unchanged monetary stance committing to expanding the monetary base by between JPY 60-70 trillion per year in order to achieve its 2% inflation goal in two years time.”

“The BOJ left its assessment of the economy unchanged, stating that the economy is expected to continue a “moderate recovery”. We still believe it will prove very difficult to achieve the 2% inflation goal and hence further monetary easing will be likely at some point next year.”
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