On Tuesday the Japanese yen slipped against the dollar following the announcement by the BOJ to keep its massive policy stimulus low.
Against the dollar the yen fell 0.2 percent at 111.25 yen after it fell to 110.75 yen in trading earlier.
Market participants, snapped up higher yielding currencies like the Australian dollar in volatile trading.
FX strategist at ING in London, Viraj Patel reportedly said that the BOJ decision to keep the interest rates low has signalled a cap on bond yields, indicating that there may be some more room to run.
Although the BOJ decision to hold its short-term interest target rate at 0.1 percent and 10-year JGB yields at zero percent, the bank said that long-term rates would be allowed to fluctuate. Depending on the price developments and economic circumstances, giving it more flexibility to conduct its bond purchases.
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European, inflation and GDP data are now the focus of market participants, with expectations that The European Central Bank will deliver hawkish comments.
The Bank of England and the Federal Reserve Bank are also in focus this week. Expectations are that The Bank of England will raise interest rates on Thursday. While there are also expectations that the U.S. central Bank will gradually raise rates following their two-day rate review on Wednesday.
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