The Yen remains flexible. Overview for 17.03.2020

17.03.2020

USDJPY is growing on Tuesday morning; however, investors’ demand in the Yen as a “safe haven” asset is still here.

On Tuesday morning, the Japanese Yen is retreating against the USD. The current quote for the instrument is 106.51.

Yesterday, the Bank of Japan decided to expand its easy monetary policy to help the country’s economy fight the consequences of the coronavirus spread and its influence on global economies all over the world. The Japanese regulator made a decision to loosen its monetary policy even more by applying different tools and mechanisms, from buying government bonds to providing liquidity in American dollars.  

Moreover, policymakers also introduced a new operation to provide loans against corporate debt as collateral at the interest rate of 0% with maturity up to 1 year. 

The core QE program remained unchanged at ¥2T; it will continue at least until September 2020. 

The regulator believes that both external and internal financial conditions became less advantageous due to the Covid-19 outbreak. Uncertainty in the global economy remains high, thus making the economic activity weaker. 

The BoJ is another large central bank that actively participates in helping global financial conditions reach stability. Meanwhile, the Yen is being used by market players as usual when it is necessary, as a “safe haven” asset.

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.