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BoJ Supports JPY Crosses

JPY

The JPY is trading on the defensive on the back of the upping of the size of today’s scheduled BoJ Rinban operations covering 3- to 10-Year JGBs & the announcement of unscheduled BoJ Rinban operations covering 10- 25+ Year JGBs (also for today), as the Bank looks to exert more control over JGB yields given the market’s desire to test its conviction re: the permitted 10-Year JGB yield trading band. USD/JPY trades as high as Y123.20, last +25 pips or so on the day, just shy of Y123.15. The rate remains comfortably within the confines of this week’s ~312 pip range. The market has looked through weaker than expected Japanese retail sales data, as you would expect in normal times, let alone under current circumstances.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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