| The Bank of Japan has announced a 10 trillion yen ($126.7 billion) asset purchase stimulus plan to help kick-start the third largest economy in the world. Despite the action, the yen has continued to gain strength, continuing a multi-year bull run. The Guggenheim CurrencyShares Japanese Yen Trust (NYSEArca: FXY) recently broke through its 200 day-moving-average.
“As a consequence of QE3, the US dollar is the weakest performing G10 currency this quarter and pressure on the already overvalued yen has been stepped up,” Jane Foley, currency strategist at Rabobank, said in a report. “Retaliation against the Fed’s QE3 announcement provides a decent explanation as to why the BoJ decided to waste no time in announcing further monetary policy measures.”..............................................Full Article: Source
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