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Yen underperforms, GBP/JPY at 6-year high

FXStreet (Córdoba) - The Japanese yen continues to underperform Monday, weighed by the Bank of Japan surprise decision to ease its monetary policy further, widening the policy divergences with other G10 countries.

The yen fell sharply across the board on Friday and continued to weaken at the start of a new month, falling to fresh multi-year lows against the dollar and the pound, whose central banks are expected to kick off the hiking cycle next year.

GBP/JPY broke through September's highs and reached its highest level since October 2008 at 182.16 in recent dealings. At time of writing, GBP/JPY is trading at 182.05, recording a 1.30% gain Monday and accumulating over 700 pips since the BoJ move.

Even though EUR/JPY climbed to a 6-month high of 142.23, the euro is lagging other majors against the yen, as it remains constrained by self-weakness given prospects of further easing measures by the European Central Bank to boost the sluggish economy.

Meanwhile, USD/JPY extended gains and scored a fresh 7-year peak of 113.86. The Federal Reserve ended its own asset purchase program last week, while issuing a statement more hawkish than markets had anticipated.

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