On Friday, the Bank of Japan (BoJ) in its monetary policy statement unexpectedly increased its monetary base at an annual pace of about 80 trillion yen. This represents a hike of 10-20 trillion yen.
As additional money is being printed, it is natural for USD/JPY and GBP/JPY to rise. A very conservative intrinsic valuation would set a target price of USD/JPY at 120 and GBP/JPY at 190. Clarence Lim, a trading associate agreed on these values and stated that they are very likely to be reached in 3 months.
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