Forex Flash: Markets broadly stable on BOJ stance - BTMU

FXstreet.com (Barcelona) - Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that the financial markets are broadly stable as market participants continue to digest the unprecedented monetary policy measures taken by the BoJ last week.

He feels that there is every chance of an imminent break above 100.00, with the risk associated with shortening the Yen seen as minimal given the strong desire of the Japanese authorities to keep the current momentum going in order to shift both investor and household expectations about the future. Elsewhere, PM Abe spoke in the Diet today and there was no hint of concern over recent market movements stating that the BOJ measures “will correct the excessively strong yen” adding that the intention of policymakers is not to directly weaken the yen. Halpenny adds that there have been reports of increased buying of gold by Japanese households this week may well be an indication that the BOJ policy measures could well alter household investing behaviour that results in increased appetite for foreign currency denominated assets that ultimately pushes the yen weaker over time.