USDJPY Analysis: December 21, 2023

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USDJPY analysis – The Japanese yen increased to about 143 per dollar, recovering from its earlier losses. This happened after the Bank of Japan decided to continue with its very relaxed monetary policy. The yen also grew stronger because of the US dollar’s general weakness before important US economic growth and inflation reports. On Tuesday, the BOJ’s decision to keep interest rates very low surprised the markets.

They also didn’t mention any plans to start making their policies stricter next year. BOJ Governor Kazuo Ueda seemed more cautious than expected. He spoke after the meeting, saying the bank is ready to ease policies more if needed. The December meeting was not expected to be important until Ueda talked about when the BOJ might increase rates. He also said his job would get tougher from the end of this year to next year. But BOJ officials have recently dismissed the idea of making policies stricter sooner.

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