USD/JPY hits fresh daily highs above 105.00, rumors about BoJ hitting the wires

USD/JPY  gained momentum during the last two hours as stocks recovered ground in Wall Street and amid rumors about Friday’s events at the Bank of Japan. Reuters reported that the BOJ is preparing stimulus measures due to pressures from the government while stating that the Minister of Finances has a statement prepared in the event of the central bank announcement. 

Rumors and speculations about what the BoJ is going to announce in a few hours are likely to increase sharply affecting the yen in the market. Regarding stocks, in the US the Dow Jones is falling 0.14% but it moved off lows while the Nasdaq gains 0.21%.

USD/JPY erases losses ahead of BoJ

The pair gained more than 50 pips during the las two hours. It climbed from 104.80 and printed a fresh high at 105.40. It is trading slightly below the level it had yesterday, before the decision of the Federal Reserve. Traders are now focusing on the BoJ meeting.

“USD/JPY has staged a modest rebound after failing to break sustainably below the 100.00-level initially following the Brexit vote. However, the underlying downward trend so far this year remains firmly in place. It will require the BoJ to provide a policy shock tomorrow to turn the tide. More of the same in terms of policy easing measures is unlikely to prove sufficient. We doubt that the BoJ will announce some form of “helicopter money” any time soon”, said analysts from BTMU.