Yen Falls As BoJ Leaves Monetary Policy Unchanged

The Japanese yen weakened against the other major currencies in the Asian session on Friday following the Bank of Japan's announcement to leave its monetary policy unchanged in its December meeting.

The bank decided by a 8-1 vote to raise the monetary base at an annual pace of about JPY 80 trillion. Also, the bank lefts its asset purchase policy unchanged.

The bank reaffirmed that the quantitative and qualitative easing has been exerting its intended effects and that the bank will continue with the policy to achieve the price stability target of 2 percent.

The yen fell to an 8-day low of 119.35 against the U.S. dollar and a 4-day low of 186.85 against the pound, from yesterday's closing quotes of 118.81 and 186.16, respectively.

Against the euro and the Swiss franc, the yen edged down to 146.45 and 121.60, from yesterday's closing values of 145.94 and 121.21, respectively.

If the yen extends its downtrend, it is likely to find support around 148.57 against the euro, 189.32 against the pound, 123.64 against the Swiss franc and 121.17 against the greenback.