The yen fell after the BOJ kept its ultra-loose policy unchanged and offered no hints of a possible switch in direction, but losses were limited, suggesting investors still expect the central bank to tighten next year, UniCredit Research said.
“This relatively moderate reaction… suggests that investors are still confident that a change in the BOJ monetary policy might occur next year although the Japanese central bank refrained from indicating any timeframe yet.”
The dollar’s gains against the yen were also insufficient to lift the DXY dollar index, with the U.S. currency remaining “sluggish.”