WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) and iShares MSCI Japan (NYSEArca: EWJ) rallied for the second straight day on Monday as the Bank of Japan started its monthly two-day policy meeting.

DXJ and EWJ were up 3.9% and 1.7%, respectively, in early trading Monday. DXJ hedges its currency exposure to the Japanese yen, unlike EWJ.

CurrencyShares Japanese Yen Trust (NYSEArca: FXY) slipped nearly 2%. DXJ outperforms EWJ when the yen weakens versus the dollar, and vice versa.

Investors will get the Ban of Japan announcement on Tuesday followed by a press conference with BOJ Governor Haruhiko Kuroda.

“Given the recent fluctuations in Japanese stocks, government bonds, and the yen, focus will be on any comments and measures related to this recent increase in market volatility,” said David Kelly, chief global strategist at JP Morgan Funds.

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