USD/JPY is accelerating its bullish momentum, having climbed above 130.00 for the first time in 20 years.

The slump in the yen got accentuated after the Bank of Japan (BOJ) backed its ultra-loose monetary policy while doubling down on bond purchases.

The central bank left the key policy settings unadjusted but pledged to buy unlimited bonds at fixed-rate every business day to defend the 0.25% yield cap on 10-year Japanese Government Bonds (JGB).

The BOJ’s dovish stance widened the yield differential between the US and Japan, as the Fed remain on track for double-dose rate hikes at its May and June meetings.

more to come ...