Yen Continues Losing Ground, Euro Taking Advantage

The Japanese Yen dropped to a 16-month low against the Euro, dragged down by expectations that the Bank of Japan will resort to more monetary stimulus on Thursday after a much anticipated policy meeting.

The Euro has been on the rise having reached its strongest levels against the Yen since August last year. The single currency was also stronger against the US Dollar hitting a 7-month high.

So focus shifts to the BOJ meeting and with the new Japanese government keeping pressure on the BOJ to ease policy, we could be in for a bumpy ride over the next few days.