Ahead of this Friday’s key Bank of Japan (BOJ) monetary policy meeting, Japan’s Nikkei came out with the news suggesting a six-month extension to the current corporate aid, currently about to expire on March 2021.
The news cites concerning about fresh economic downturn, based on the coronavirus (COVID-19) resurgence in Tokyo, coupled with the December Tankan Survey of Enterprises in Japan, to justify the expectations.
Market reaction…
Following the news, USD/JPY eases from 104.06 to 104.00 while waiting for Tokyo open to respond during early Tuesday. It should, however, be noted that the BOJ has already cited such concerns in the past and hence it is not the blue moon expectations, which in turn hints no major reaction by the yen pair to the news on the Japanese market’s open.
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