Japan’s Central Bank Lifts Yen Crosses
(eToro Blog) Widely anticipated by investors except for the scope, earlier today the Bank of Japan loosened monetary policy by increasing their asset purchase plan to 80 trillion Japanese Yen, an increase of 10 trillion Japanese Yen, the equivalent of $127 billion; analysts had expected only a 5 trillion Yen increase from the BOJ. The central bank also amended the deadline for its target to December 2013, while holding interest rates at 0.1%. They also announced that the pace of future stimulus was likely to increase next year. At a press conference to be held later today, the central bank governor is expected to detail the reasons behind the decision.
The easing moves in the past two weeks by both the European Central Bank and the Federal Reserve had sent the Japanese Yen higher, hurting the ongoing recovery efforts of the fragile, export-reliant Japanese economy. Moreover, the recent anti-Japan protests taking place in China are likely to negatively impact Japanese exports over the coming months.
On OpenBook, sentiment for the key Yen-crossed pairs are predominantly bullish; on the USD/JPY pair, 92% of traders are buying against 8% selling, while on the EUR/JPY pair, 89% of traders are buying against 11% selling. OpenBook trader mschuetze from Germany opened a long position in the USD/JPY pair about 36 hours ago, and closed it earlier today with a 50.3% gain. The trader also has an open long position in the pair which is in the green with a 57.23% gain, while an open EUR/JPY long is currently showing an 85.36% gain. As of this writing the trader has 22 followers and 4 copiers and while the trader’s realized equity is in the red for the week, the last month’s realized equity was 185.2%, and for the last three months more than 300%.
OpenBook trader emaze46 from Italy opened a long position in the EUR/JPY pair earlier in the trading session, and held it until just after the announcement, earning a 114% profit. Another long position closed earlier gained 45.22%, and a pair of longs closed out yesterday earned 50.70% and 35.55%, respectively. For the week, the trader has realized equity of 87.1%.
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