Definition – What does Bank of Japan (BOJ) mean?
The Bank of Japan (BOJ) is the central monetary authority for Japan. Considered one of the major central banks in the world, the Bank of Japan implements the monetary policy of the Japanese government, maintains the currency and basically monitors the entire Japanese financial system. The Bank of Japan can intervene in the yen or other aspects of the Japanese economy if the government believes it is a justified act that protects Japan’s financial stability.
The Bank of Japan is headquartered in the Nihonbashi district of Tokyo.
ForexTerms explains Bank of Japan (BOJ)
The Bank of Japan usually telegraphs its currency interventions by placing public calls to exchanges to gather quotes on the yen. Japan tends to only intervene when the yen is gaining strength against other currencies. The Japanese economy is highly dependent on exporting goods like cars and technology to other countries, so a strong yen hurts the sales of those exports. The Bank of Japan also issues many important economic releases that forex traders pay attention to. The most prominent of these is the Tankan Survey that serves as a general reading of business sentiment and production in Japan.