On Thursday, June 16, the yen gains ground against the greenback for the fifth day in a row. The Bank of Japan decided to keep the current monetary policy unchanged before the referendum in the UK. The pair dollar/yen shed 1.85% to 104.03, euro/yen lost 1.76% to 117.22.
Japanese stocks have rapidly fallen due to the passive decision of the Bank of Japan, the Fed which kept the interest rate unchanged in the USA at 0.5%. These events triggered active sales in the market. The leading index Nikkei edged down to 3.1% (a low since April), since the start of the week the index tumbled 7%. The Topix slid 2.8%, a low since February.
In the short run the market will stay in the zone of oversold. Concerns over the referendum in the UK are so high that we should not expect any growth until June 23. At the moment market participants prefer to avoid any risk assets. Fund managers worry about their assets and try to reduce them having more cash to protect their funds.