BoJ

BOJ governor Ueda said that the central bank could cancel YCC and shrink their balance sheet, if their price targets are met in a 'sustainable, stable manner'.

With the BoJ and FOMC meetings, and key US data including GDP, Core PCE Price Index and nonfarm payrolls report all to come, the USD/JPY outlook could change dramatically and perhaps multiple times over the next several days.

USD/JPY's price action this week is providing a strong signal given the yen's usually bullish seasonal backdrop.

So the BOJ have indeed been discussing potential tweaks to one of their major policies, although that is not to say any of it will happen soon (if at all) before being scrapped

There have been high hopes that Ueda will bring a hawkish twist to the BOJ, but early remarks in his confirmation speech say anything but.

With Japan’s CPI due out in a few hours and BoJ Governor nominee Ueda set to testify on Friday, EUR/JPY could be volatile.

Over the course of the last 2 trading days, USD/JPY has moved from a low of 128.33 to a high of 132.90, a move of 457 pips.

There were high expectations from the BOJ at today’s meeting, yet what they delivered was a nothing burger. That is classic BOJ!

…But in which direction?

Japan, long known for their lack of inflation, has just seen consumer prices rise to their highest levels since 1982.

The BOJ aggressively purchased bonds at the long end of the curve and sent the 30-year yield markedly lower, although the move did not spill over the yen pairs.

The BOJ aggressively purchased bonds at the long end of the curve and sent the 30-year yield markedly lower, although the move did not spill over the yen pairs.

A volatile session for the yen on Friday likely points to a currency intervention from the BOJ or MOF, in an attempt to stop or at least pause the currency’s fast depreciation.

A volatile session for the yen on Friday likely points to a currency intervention from the BOJ or MOF, in an attempt to stop or at least pause the currency’s fast depreciation.

The BoJ will have to change tack if it wants to stop yen slide

The BoJ will have to change tack if it wants to stop yen slide

With the BOE and the BOJ intervening over the last week, GBP/JPY has been extremely volatile, trading in a range from 164.44 down to 148.79 over that same timeframe.