The euro and US dollar made significant gains on the Japanese yen this afternoon. So far, the euro has solidified gains and is at 105.44, an increase of 0.8%. The greenback has taken its gains against the JPY to 79.89, a six month high for the USD/JPY.
Driving this trend of a weaker yen is the decision taken last week by the Bank of Japan to insert heavy amounts of capital into the economy. So far, the weakening of the yen is consistent with the strategy of the BoJ in which the Japanese currency weakens and thus its exports become much more attractive to other countries.
