The Bank of Japan delivered its Policy Rate decision, Outlook Report and Monetary Policy Statement at 03:11 UTC on July 31. In the first 19 minutes the yen firmed slightly against most majors, with EUR/JPY posting the largest move.
Where the JPY moved
EUR/JPY led, easing 0.065% from 185.03 to 184.91 as the yen strengthened.
CAD/JPY followed, down 0.047% from 114.65 to 114.59, while SGD/JPY slipped 0.042% from 125.16 to 125.11.
USD/JPY edged 0.037% lower, from 160.74 to 160.68, and GBP/JPY dipped 0.033% from 216.16 to 216.09.
The lone exception was AUD/JPY, which ticked up 0.019% from 112.84 to 112.86, leaving the yen marginally softer against the Australian dollar.
What the reaction shows
The overall response was muted. Every move sat well within a tenth of a percent, and the yen’s modest firming was spread fairly evenly across the European and commodity crosses rather than concentrated in any single pair.
EUR/JPY and CAD/JPY carried the widest swings, while USD/JPY and GBP/JPY barely shifted. AUD/JPY’s small gain kept the picture mixed rather than one-directional.
Taken together, the price action across our feed points to a restrained, low-volatility reaction in the opening quarter-hour following the BOJ’s decision and accompanying documents.
Descriptive market news from the ForexBullion Research Team. Not investment advice.
