Japanese media Yomiuri came out with the news suggesting another hawkish move by the Bank of Japan (BoJ) during its next week’s monetary policy meeting. The news signaled that the Japanese central bank is up for reviewing the side effects of massive monetary easing in the monetary policy meeting next week.
“BoJ reviews due to skewed interest rates in markets even after last month’s tweak in bond yield control policy,” adds Yomiuri per Reuters.
Following the news, the USD/JPY pair dropped around 50 pips to 131.90, close to 132.10 by the press time.
Also read: USD/JPY bulls eye a break of key daily resistance with US CPI eyed