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JPY Sinks on Various Sources Reports Seeing Little Need to Act on YCC

BOJ
  • Concurrent BoJ sources reports work in favour of USD/JPY, with both Bloomberg and Reuters citing sources in reporting that the BoJ see little need to change their approach to yield curve control for now. The BBG pieces writes that while there is little need to act, they will still likely discuss YCC change even if no tweaks are made, with the bank still not confident about hitting their price goals on a stable basis.
  • A notable surge higher in USD/JPY on the back of those headlines, hitting new daily highs on a solid spike in volumes: JPY futures saw over 10k contracts trade in response - cash equivalent of over $900mln for easily the best volumes of the session so far.
  • USD/JPY now comfortably through the 50-dma resistance at 140.62 and now the best levels since Jul11 (session prior to last US CPI release).
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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