Forex News: Yen Sold as Japan Approved New Stimulus

DailyFX

THE TAKEAWAY: Japan approves 10.3 trillion yen of additional stimulus > Goal to achieve 2 percent GDP growth and add 600,000 jobs > Yen Sold

The Japanese Yen traded lower around 21:00 GMT Thursday amid speculation that new Prime Minister Shinzo Abe and his cabinet members would approve further stimulus measures during today’s trading session. At around 0:45 GMT today, news wires reported that Japan had approved a 10.3T yen ($116 billion) stimulus package in an attempt to end deflation and restore economic growth.

Prime Minister Shinzo Abe said the Bank of Japan should pursue “bold” policies to fight deflation and weaken the strong currency. Abe also noted that “fiscal restructuring would be impossible without a strong economy”. The new stimulus measures are designed to achieve 2 percent GDP growth and grow the labor force by adding 600,000 new jobs.

USD/JPY, 15 Minute Chart

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