After a blistering run of recovery the yen slid on investor sentiment down as the Bank of Japan (BOJ) unanimously voted to keep intact the yield curve control (YCC) targets current set a -0.1% for shorter dated interest rates and for the longer dated 10-year yield this has been kept at 0%.
Market expectation was that the bond yield cap and the ultra-low interest rates will begin to be phased out given rising inflationary pressure. This saw the Yen sliding considerably during the Asian trading session and going into the European session. With The US traders back from the Martin Luther King Jr National holiday on Monday, the Yen could possibly see further selling pressure during the New York trading session.
Market expectation was that the bond yield cap and the ultra-low interest rates will begin to be phased out given rising inflationary pressure. This saw the Yen sliding considerably during the Asian trading session and going into the European session. With The US traders back from the Martin Luther King Jr National holiday on Monday, the Yen could possibly see further selling pressure during the New York trading session.