Bank of Japan (BoJ) — FX Impact, Latest News & FAQ
The Bank of Japan (BoJ) is the central bank of Japan and one of the most consequential institutions in modern FX history. The BoJ kept policy rates at or near zero from the mid-1990s to 2024 and used yield-curve control plus large-scale ass…
About Bank of Japan
The Bank of Japan (BoJ) is the central bank of Japan and one of the most consequential institutions in modern FX history. The BoJ kept policy rates at or near zero from the mid-1990s to 2024 and used yield-curve control plus large-scale asset purchases to suppress JGB yields. Because Japanese rates were anchored, USD/JPY and other yen crosses became near-pure expressions of the foreign-rate side of the spread — particularly US 10-year yields. BoJ decisions usually arrive in the Tokyo morning, often without a fixed clock time. The Ministry of Finance also intervenes verbally and occasionally directly when yen weakness threatens stability. NewFXT covers every BoJ release with live yen-cross impact, AI commentary and calendar context.
Most affected FX pairs
BoJ FAQ
What is the BoJ?
The Bank of Japan is the central bank of Japan. It sets the short-term policy rate, conducts yield-curve control on JGBs, and runs asset-purchase programmes that include ETFs and corporate bonds.
When does Japan intervene in the yen?
The Ministry of Finance — not the BoJ — orders direct yen intervention when USD/JPY threatens to break multi-decade highs and yen weakness becomes destabilising. Verbal warnings from MoF officials usually precede direct action by days or weeks.
Why is USD/JPY linked to US Treasury yields?
Because Japanese rates were near zero for nearly three decades, the US-Japan yield spread is dominated by US yields. USD/JPY therefore tracks the US 10-year yield closely, especially intraday.