The Japanese yen against the US dollar has dropped to its local lows. The current quote is 137.52.
The decision of the Bank of Japan to stick to its soft credit and monetary policy logically played against the yen. At the last BoJ meeting, the interest rate remained at -0.10% per annum. The yield curve management scheme never changed either.
The ultra soft credit and monetary policy was launched in 2016 and has not been altered noticeably since then.
Kazuo Ueda, the new chairman of the Bank of Japan, commented rather generously. He stated that to achieve price stability, the easy money policy should be carried on, providing economic activity. Ueda set the inflation target at 3.5%.
In the future, the BoJ might revise its attitude as long as Ueda did not exclude multi-level analysis of the softened CB measures.
The bulls in the yen gave in very fast. The JPY might remain weak until the meeting in June or July or until the Bank of Japan says something particular about correcting the credit and monetary policy.