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Late BOJ announcement had market.........>

DOLLAR-YEN
MNI (London)
DOLLAR-YEN: Late BOJ announcement had market positioning long JPY in
anticipation for some major action to be announced (it was the latest delivery
of the decision since the intro of YCC in Sep 16). However, the Bank
disappointed opting for forward guidance, maintaining target around 0.0% with no
major tweaking in YCC policy. USD/JPY had been pressed down to Y110.75 as
decision was announced but quickly bounced on details to Y111.44. Asian traders
noted ahead of release that macro, leverage and system accounts were sitting
long, while short term accounts were short. The reaction caused a quick flush
out of those short term accounts, with rally running into profit take sales
along with month-end positioning with most bank models suggesting 'strong USD
sales' to be seen at today's fixings. USD/JPY has settled around Y111.10 into
Europe.  
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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