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Market Impact: 0.4

Yen Is Vulnerable With Japan on Holiday After BOJ Disappoints

Source: Bloomberg

Currency & FXMonetary PolicyInterest Rates & YieldsBanking & Liquidity

The yen faces heightened risk of sharp moves and further depreciation over the coming week as Japan's three-day holiday reduces FX trading liquidity. Investor disappointment with the Bank of Japan's lack of stronger guidance on the pace of future rate hikes is weighing on the currency and could amplify volatility in thin markets.

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mildly negative

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