XE Market Analysis: Europe – Oct 21, 2015

The yen came under the cosh after Japan unexpectedly turned out a trade deficit in September data, which rekindled speculation for the BoJ to expand its QQE program at its upcoming Oct-30 policy meeting. USD-JPY clocked an eight-day peak at 120.07, and EUR-JPY made six-day highs, though the Japanese currency managed to pick itself up, aided by good USD-JPY selling interest above 120.00. USD-JPY was back around 119.80 at the time of writing. Japan’s trade deficit was JPY 114.5 bln against expectations for a JPY 87 bln surplus.