Japan’s Economy Minister Shigeyuki Goto told Reuters on Tuesday. “BoJ’s Friday decision was meant to increase the sustainability of monetary easing by making YCC more flexible.”
Goto stated that he “does not believe the Bank of Japan’s decision. On Friday was a shift in monetary easing stance.”
His remarks follow a senior official from Japan’s ruling Liberal Democratic Party (LDP) saying Monday that “the Bank of Japan’s policy tweak sends a message to exit from easing finally.”
BoJ’s Decision market reaction
Based on the remarks above, USDJPY is testing intraday highs near 142.80, up 0.33% on the day.
During the early Asian trading hours on Tuesday, the AUDJPY cross continues its gains and trades in positive territory for the third day in a row. The cross is currently trading at 95.68, up 0.12% on the day.
The AUDUSD’s recovery stalled at the 20-day Simple Moving Average (SMA), which is currently at 0.6740. The pair then retreated slightly, maintaining the most of the day’s gains. The rebound is significant for the Australian dollar since it has moved away from the critical support region located near 0.6600.
