Have you ever thought that the growth of currency’s price against the greenback can cause a lot of troubles for the economy? Well, it seems that it is true, as the Japanese started to take actions and adopt policies which are going to save yen from unwanted rapid growths during the times when traders flee for safe havens and for yen in particular. Of course the whole of the world population has already picked up on the fact that American economy is not exactly doing so well so right, with political uncertainty and trade war, so it is clear that the look for safe havens is more or less afoot.
But a development too swift can damage the economy pretty hard. That is why the countries that want to shield themselves from unwanted inflation and a too-rapid growth have to take actions and somehow keep the growth at bay. Right now the actions were only announced and it seems that some of them will be implemented only is REALLY needed, but this statement has already resulted in yen being sold off just a little bit. While other countries are looking for the ways to find stimulus for their currencies. BOJ just seems to want some independence from the rest of the world and the markets.
This is a very interesting piece of policy, the one that is going to make a lot of waves and the one that is going to awaken the need for trading signals.