The new BOJ easing measures were even more than the market had expected. New Japanese Prime Minister Shinzo Abe is strongly committed to inflation and a weaker yen to boost the struggling economy. [Yen Rebound May Cool Japan ETF Rally]
DXJ was up 28% for the six months ended April 3. FXY, which tracks the movement of the Japanese yen versus the U.S. dollar, is down about 17% over the same period.
“The BOJ certainly surprised to the upside of expectations,” said Peter Kinsella, a currency strategist at Commerzbank, in a Bloomberg report. “They’ve done everything that’s required to start a reflation of the economy. It’s very clear the direction is to sell yen and it’s going to weaken further.”
CurrencyShares Japanese Yen Trust
