Japanese Yen Soared And Daily Stock Slump Continued.

The Bank of Japan unexpectedly did not increase its ease of easing, and the Japanese yen's soaring stock market plunged.

Even if Japanese finance minister Taro Aso said on Saturday that he will act when necessary, the Japanese yen is still on the move today.

Among them, the Nikkei 225 index crashed in early trading, and once fell 4% (noon closing down 3.6%), the biggest drop in 2 and a half months, the yen to the dollar exchange rate rose to around 106, a year and a half high.

The Bank of Japan announced that the basic currency will remain 80 trillion yen, the target year growth rate will remain unchanged, and the negative interest rate -0.1% will remain unchanged.

Japanese shares then opened a slump pattern, which fell 3.61% on the day, while the yen surged 2% at the same time.

In this regard,

President Kuroda Higashihiko also deliberately appease the market at the press conference held later, saying that if necessary, it will further expand the scale of easing.

Because the market expected the Bank of Japan to increase the purchasing power of Japanese stock ETF, which helped the stock market rise.

As for the appreciation of the yen, Nomura Securities reported that the yen and

The negative correlation effect has always been negative, and Japanese stocks have fallen and the yen has risen.

It is particularly worth mentioning that Japan is also rare to introduce monetary easing measures on the other hand, its currency has appreciated substantially. Generally speaking, looseness will inevitably bring about depreciation of the local currency.

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The reason for the rise is that most of the explanations given by the market are: Japan has announced that it is loose, which proves that other countries' economies are even worse, and the yen has always been a traditional hedge currency.

Of course, analysts also point out that there are a lot of speculative forces in the Japanese foreign exchange market.

It seems that the Japanese Chancellor of the exchequer Taro Aso said on Sunday that he did see a unilateral speculation on the yen exchange rate and was highly concerned that he would continue to closely monitor the market trend and intervene if necessary.

But unexpectedly, on Monday, the Japanese yen soared and the stock market plummeted.

In this regard, market analysts pointed out that the United States has just issued a semi annual exchange rate policy report, the Japanese into the list of foreign exchange observation, and threatened to take retaliatory actions, helped increase the number of bulls.

The yen is firmly convinced that Japan is not too bold to intervene heavily in the US under pressure from the US.

Despite Taro Aso's previous public statements, the US Treasury's April 29th report is unlikely to limit Japan's ability to respond when necessary.