JPY weakens across board as BOJ maintains dovish stance, delays hikes

The Japanese yen depreciated 0.3% against major currencies following the Bank of Japan's decision to keep rates unchanged at 0.25%. EUR/JPY climbed to 168.42 (+0.35%), while GBP/JPY reached 198.75 (+0.42%). The BOJ confirmed its gradual bond tapering schedule for 2025 but offered no clear timeline for future rate increases, disappointing hawks expecting more aggressive tightening. Governor Ueda cited ongoing assessment of wage growth and inflation sustainability. Market participants had priced in a 15% chance of a June hike, leading to yen selling on the dovish hold. Technical analysis shows EUR/JPY breaking above 168.30 resistance, targeting 169.00. GBP/JPY eyes 199.00 psychological level. The yen's weakness may persist until the BOJ provides clearer forward guidance, with July's meeting now in focus for potential policy shifts.