The Japanese Yen weakened over 2 percent in the aftermath of January’s Bank of Japan monetary policy announcement. If losses are sustained, this will end up being the best single-day performance for USD/JPY since March 2020. Let us take a closer look at what happened here. Well as it turns out, nothing much at all. The BoJ left all policy settings unchanged this month. This includes the policy balance rate (maintained at -0.1%) and the 10-year bond yield target of about 0%. Policymakers also mentioned that they would keep on with bond purchases with a degree of flexibility. That underscored the central bank’s ... (full story)