The AUD/JPY saw a sharp rise on Friday afternoon as traders are responding negatively to news coming from Japan. The BoJ went ahead with its decision to inject capital into the economy, thereby weakening the currency. While the yen did drop to its lowest point in 6 months, this could just be a temporary consequence of the Bank of Japan’s decision. The BoJ is hoping the decision to purposely weaken the yen was done in the hopes that this would ultimately trigger further investment down the line. Consequently, this would increase the probability that the overall value of the yen would rise past its normal levels.
As the afternoon develops, we are also seeing that the euro is hanging on thus far. The single currency has so far been able to maintain its gains from late last night. The EUR/USD is staying right around $1.3124.
As the week winds down, investors will be anticipating a significant impact from the EU finance ministers’ meeting on Monday. There, the ministers will determine the timeframe and contours of the anticipated bailout package for Greece.
