Looking at the impact on the major JPY pairs today

The BOJ surprised the market by resetting the target rate for the 10 year up to 0.5% from 0.25%. The chart above shows the actual 10 year yield with the yield moving toward the 0.5% level (it reached 0.432%) today. That sent the 10 year yield to the highest level since midyear 2015.

In the currency market, the JPY pairs all moved sharply higher (higher JPY - see table above).

Looking at the snapshot of the USDJPY and the major crosses, the biggest mover was the AUDJPY which fell -4.22% on the day (higher JPY). That one-day move is the largest since June 24, 2016 when the price moved down -5.68% (see chart below).

For the USDJPY, it is down -3.82% on the day. Recall on November 10, the USDJPY also moved down sharply. On that day the pair move down -3.72%. In June 2016 it fell -3.699% - similar to the decline today and last month. When was the USDJPY down more than the -3.82% currently? The move today is the sharpest move to the downside since October, 7, 1998

What happened in June 2016?

The JPY was pushed higher by Fed, safe-haven flows amid the Brexit fears. The UK referendum on Brexit was on June 23, 2016.

How do the JPY JPY The Japanese yen (JPY) is the official currency of Japan and at the time of writing is the third most-traded currency in the world behind only the US dollar and euro.The JPY is used extensively as a reserve currency and is relied upon by forex traders as a safe haven currency.Originally implemented in 1871, the JPY has had a long history and has survived multiple world wars and other events. This was followed by the creation of the Bank of Japan (BoJ) in 1882 and the full oversight of the JPY by The Japanese yen (JPY) is the official currency of Japan and at the time of writing is the third most-traded currency in the world behind only the US dollar and euro.The JPY is used extensively as a reserve currency and is relied upon by forex traders as a safe haven currency.Originally implemented in 1871, the JPY has had a long history and has survived multiple world wars and other events. This was followed by the creation of the Bank of Japan (BoJ) in 1882 and the full oversight of the JPY by Read this Term moves vs. the major stack up historically?

• USDJPY USD/JPY The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting Read this Term largest decline since October 7, 1998
• EURJPY largest decline since June 24, 2016
• GBPJPY largest decline since June 24, 2016
• CHFJPY largest decline since June 24, 2016
• CADJPY largest decline since March 2020
• NZDJPY largest decline since June 24, 2016