The yen experienced broad-based selling pressure in anticipation of the Bank of Japan’s (BOJ) monetary policy meeting. Market participants widely expect the BOJ to maintain its ultra-loose monetary policy stance, diverging from other major central banks that are tightening their policies to combat inflation.

The divergence in monetary policy is a key factor contributing to the yen’s weakness. While the Federal Reserve and the European Central Bank are raising interest rates, the BOJ is expected to keep rates near zero, making the yen less attractive to investors.

Analysts suggest that the yen’s weakness could persist if the BOJ continues to resist tightening its monetary policy. The central bank’s commitment to supporting economic growth through accommodative policies is seen as a drag on the currency.

Key factors influencing the yen’s movement include:

• The Bank of Japan’s monetary policy decisions
• Interest rate differentials between Japan and other major economies
• Global risk sentiment
• Economic data releases from Japan

The market will be closely watching the BOJ’s meeting for any signals about a potential shift in its policy stance. However, most economists expect the central bank to remain patient and maintain its current course for the time being.