USD/JPY Surges Post BoJ, Earlier Apr Highs In Sight

USD/JPY has continued to rebound post the BoJ meeting outcome. We did have a few brief moves to 133.40 (based off BBG GIP) prior to the announcement but these weren't sustained. The pair last around session highs at 134.80.

• The outcome is largely in line with earlier Nikkei reports (and our own preview), the BoJ removed reference to Covid in its forward guidance. It also removed reference to rates in terms of the guidance (expecting rates to remain at low or present levels was left out), but the Bank left in that is prepared to take further easing measures if necessary. The BOJ will also conduct a review, which is expected to take 1 to 1.5 yrs.
• Keeping the reference for potential further easing may disappoint the market around any prospects of a shift in the policy stance at the next meeting.
• For USD/JPY bulls, the Apr 19 high of 135.13 is not too far away. Also note the simple 2100-day MA is just under 137.00.