Yen Advances After BoJ Decision

The Japanese yen climbed against its major opponents in early Asian deals on Tuesday, after the Bank of Japan kept its monetary stimulus unchanged, as expected.

Governor Haruhiko Kuroda and his board members decided by an 8-1 majority vote to hold its target of raising the amount of outstanding JGB holdings at an annual pace of about JPY 80 trillion.

The bank will purchase government bonds so that the yield of 10-year JGBs will remain at around zero percent.

The board also decided to maintain the -0.1 percent interest rate on current accounts that financial institutions maintain at the bank.

The yen rose to 88.81 against the loonie, 88.42 against the aussie and 81.05 against the kiwi, from its early low of 89.19, more than 2-week low of 89.07 and near a 4-month low of 81.56, respectively.

The yen reversed from an early low of 111.03 against the greenback, rising to 110.55.

The yen advanced to 135.61 against the euro, 115.03 against the franc and 154.67 versus the pound, off its early 5-day low of 136.17, 4-day low of 115.47 and a 1-1/2-year low of 155.34, respectively.

The next possible resistance for the yen is seen around 109.00 against the greenback, 134.00 against the euro, 114.00 against the franc, 153.00 against the pound, 79.00 against the kiwi and 87.00 against both the aussie and the loonie.