News About BOJ Drives Yen Soar, What's Happening?


 The January 18th BOJ meeting is a focus

Policymakers will discuss the impact of monetary policy

Additional steps will be taken if necessary

Good news for yen investors after the Bank of Japan (BOJ) reportedly will review the impact of its loose monetary policy at next week's policy meeting.

According to a Yomiuri newspaper report on Thursday, the central bank is also said to be taking additional steps to correct volatility in the yield curve.

Last month, the central bank surprised markets by allowing its 10-year bond yield target to rise to 0.50% from the previous limit of 0.25%.

However, the move failed to address problems in the yield curve as bond yields soared to touch 0.50% last week.

Following that, the central bank's 9 policymakers are debating the side effects of yield curve control (YCC) policy and bond market movements since its decision in December at a policy meeting next week.

In addition, they will also examine whether the BOJ can correct issues in the bond market through adjustments in the amount of bonds it buys and will take additional steps if necessary.

Following the report, the yen traded higher against the US dollar in the Asian session trading at around 131.65.