The EUR/JPY has shown a rebound as it trades at 140.58 as of 22 September 2022 after the currency pair had lost almost 300 pips two weeks ago at the European trading hours.
The Bank of Japan (BoJ) announced during the Asian trading hours that it left the policy rate untouched at -0.1% as expected and sustained the 10-year Japanese Government bond yield target at 0%. The BoJ’s inaction put the JPY under selling pressure, and EUR/JPY climbed to a daily high of 143.70.
Japan’s top currency diplomat Masato Kanda confirmed that they intervened in the FX market, resulting in the JPY recording impressive gains against its major rivals. With the initial reaction, USD/JPY lost 500 pips, CHF/JPY fell over 3%, and GBP/JPY crashed from 164.50 to a seven-week low of 159.65.
Japanese Finance Minister Shunichi Suzuki and Kanda are to brief reporters on the decision to intervene in the FX market at 0930 GMT.