Japanese yen falls further on the week on word that BOJ is likely to keep policy unchanged

<p>This comes after the headlines <a href="https://www.forexlive.com/centralbank/boj-reportedly-erring-towards-leaving-policy-unchanged-next-week-20230721/" target="_blank" rel="follow">here</a>, which is disappointing yen bulls once again – whom have kept up hope for a potential policy tweak next week by the BOJ. 10-year JGB yields have also fallen down to 0.45% from around 0.48% at the start of the day. I've been warning about this since last week already:</p><ul><li><a href="https://www.forexlive.com/news/higher-japanese-yields-tees-up-potential-for-another-boj-disappointment-20230712/" target="_blank" rel="follow">Higher Japanese yields tees up potential for another BOJ disappointment</a></li><li><a href="https://www.forexlive.com/news/the-fed-and-ecb-may-not-be-the-biggest-central-bank-risks-to-markets-this-month-20230717/" target="_blank" rel="follow">The Fed and ECB may not be the biggest central bank risks to markets this month</a></li></ul><p>And now we're starting to see that come into effect with a week left before the big decision. But if markets are bailing on hope that the BOJ is going to do something, there is scope for a sharper correction still in yen pairs.</p><p>We're now approaching the 50.0 Fib retracement of the downswing this month at 141.15 but the next target will at least be the 142.00 mark for USD/JPY.</p>

This article was written by Justin Low at www.forexlive.com.