On Tuesday, January 21, the Japanese Yen appreciated 45 pips or 0.41% against the US Dollar.
The advance was driven by the BOJ Outlook Report release. The Bank of Japan raised its economic growth forecasts, and became cautiosly optimistic about the global outlook.
According to the official release: "Japan's economy is likely to continue on an expanding trend throughout the projection period - that is, through fiscal 2021 - as the impact of the slowdown in overseas economies on domestic demand is expected to be limited, although the effects of the slowdown are likely to remain for the time being."
Meanwhile, other major central banks are only reconsidering their monetary policies. The Federal Reserve decided to maintain its monetary policy unchanged amid perpetual downside risks. The Bank of England also kept its policy the same due to Brexit uncertainties.