However, the central bank maintained its base money target at ¥80 trillion yen, kept its existing pace of purchasing other assets and left interest rates unchanged at 0.1%, disappointing investors who expected a more aggressive policy change.

“The BOJ did not live up to expectations,” Norio Miyagawa, senior economist at Mizuho Securities, told Reuters. “Increasing ETF purchases makes no contribution to achieving 2 percent inflation. The BOJ won’t admit it, but it has reached the limits of quantitative easing and negative rates.”

Related: Smart Beta ETF Industry Gets Vote of Confidence from Central Bank

Consequently, currency traders rushed into the Japanese yen, lowering expectations of looser policy measures that would devalue the JPY.

On Friday, the CurrencyShares Japanese Yen Trust (NYSEArca: FXY) jumped 3.0%, with the yen strengthening to ¥102.15 against the U.S. dollar.

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iShares MSCI Japan ETF

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