The JPY fell against its major counterparts in trading Tuesday, after the Bank of Japan (BOJ) stated that interest rates will remain at its current low rate of 0.1%. While the BOJ announced a series of steps to help the ailing Japanese economy, they were relatively modest and resulted in a bad day for the Yen. Consequently the Euro rose 1% against the Yen, hitting 130.90Y. Traders would be wise to consider this information, as most analysts are predicting the JPY will not make any serious gains this week.
The U.S. Dollar also fell against most currencies today as investors began turning back to riskier currencies after the news from the BOJ. The Dollar index fell to 74.550 and the Aussie rose 1% against the greenback in trading today. Traders should look to the upcoming U.S. Pending Home Sales report, set to be released at 15:00 GMT as an indicator of what direction the Dollar will take. If the figure comes in as forecasted, at -0.4%, the Dollar may make some gains if investors decide to rely on it as a safe haven currency.
