The Japanese Yen (JPY) had started the new week with a strong bearish momentum following the Bank of Japan (BoJ) offer to buy an unlimited amount of the 10-year JGBs at 0.25%.
The BoJ had earlier decided to intervene in buying the Japanese Government Bonds (JGBs) in the market to protect the 10-year old yields, which are now pushed aside by the higher treasury yields. The news of this purchase had immensely led to the devaluing of the JPY across all its pairing.
EUR/JPY has risen to a new ATH at 134.657, AUD/JPY reclaimed its six-year high at 92.406, CHF/JPY hit its ATH at 13.689, while GBP/JPY hit two years high at 161.698, etc.
The Japanese Yen fell as low as 122.78, recording its lowest point so far since 2015.
The Officials of the BOJ arrived at this decision of shortening the 10-year Japanese Government Bond policy interest rate as the best approach for expanding the 10-year interest rate range. They, therefore, considered their decision a form of tightening against inflation for the Yen within the years to come.
Is this the best time to buy Yen?
The Yen is currently at its lowest support for the past eight years. Many professional traders believe that the best way of catching opportunities in the market is to buy low and sell high. The Japanese Yen is currently at a shallow point, offering long-term investors a good buying opportunity.
US Dollar Dominates
The US Dollar has shown strong resilience in the market for 5 consecutive days. This comes following a delay in resolution from talks for a higher interest rate lasting longer than usual. The US Dollar index has remained high, reaching 99.1 just this Monday morning. This upward pressure seems to hold as the Fed Policymakers suggest tighter policies ahead. The dollar has similarly become the haven as the Russian-Ukrainian crisis persists.