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USD/JPY Making Fresh Post BoJ Highs

JPY

USD/JPY sits near 150.10/15, as the dust settles post the dovish BoJ YCC tweak. This is fresh post BoJ highs in the pair (Immediate highs after the announcement were at 150.10). Market focus is likely to rest on last week's highs near 150.80, albeit with one eye on BoJ intervention risks. Monday lows in the pair came in near 148.80.

  • Coming up at 3:30pm Tokyo time (0630 BST) is Ueda's press conference, which is a little under 2 hours.
  • USD/JPY still sits too high relative to 10yr swap rate differentials (10yr US-JP spreads are only down 1bps for the session), with this metric suggesting we should be sub 149.00, but this may not be the day the gap closes given the dovish BoJ hold.

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