Bank of Japan decision: why it moves the yen
Updated 2026-09-20
How Bank of Japan meetings work, why the yen is sensitive to Japanese monetary policy and what to watch.
What it is
The Bank of Japan decides Japanese monetary policy in eight meetings a year. Japan has long been the country with the lowest rates among the major economies, which made the yen the funding currency of the carry trade.
Times
The decision normally arrives around midday Tokyo time, that is in the early hours of the European night or in the morning depending on daylight saving. Sometimes the time isn't precise: the site's calendar shows a window.
Why it moves the yen
A change of policy (higher rates, fewer bond purchases) tends to strengthen the yen; an accommodative tone to weaken it. The yen is also a safe-haven currency: in moments of fear carry trades close and the yen strengthens.
Pairs involved
USD/JPY, EUR/JPY, GBP/JPY and AUD/JPY are the most sensitive. Verbal or direct government intervention on the exchange rate can also cause abrupt moves.
Frequently asked questions
Why does the yen strengthen in crises?
Because it is a safe-haven currency and because yen-funded carry trades are closed, generating yen purchases.
Times and forecasts in the economic calendar
Check the calendar for the exact time, the forecast and the actual figure as soon as it is published.
Open the calendarRelated entries
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Educational content, not financial advice. Trading involves risk.