NZDJPY

New Zealand dollar / Japanese yen

According to the Cabinet Office's December economic report, Japan is going to keep a close eye on the factors such as the spread of COVID-19 in China, economic downturn risks, sharp price increases and supply issues.

There has been a sharp fall in consumer confidence in New Zealand, which causes fears of a deeper-than-expected recession.

The yen slightly weakened on Wednesday but retained its advance against the dollar seen in yesterday's session. Traders are still confused by the Bank of Japan’s policy tweak.

The Bank of Japan's next move could be a reversal in its negative rate (-0.1%), as Goldman Sachs Group Inc. said. This step can be taken due to an unexpected widening of the government bond yield band (JGB).

The Bank of Japan’s (BOJ’s) unexpected move will help to soften the country’s rising energy crisis by reducing spending on foreign fuel. The central bank’s actions caused a one-day surge in the yen.