The yen ticked up on Tuesday after the Bank of Japan refrained from expanding its stimulus. In a knee-jerk reaction to the Bank of Japan’s decision to maintain the current pace of monetary easing, the yen firmed to 119.95 yen to the dollar.
While such an outcome was widely expected, a very small number of market players had hoped for a surprise easing given weak economic data over recent weeks.
The BOJ indeed downgraded its economic assessment, and traders now focus on what Governor Haruhiko Kuroda will say on the worsening price outlook as the country’s core inflation flirts with zero. Kuroda’s news conference begins at 0630 GMT.