Yen Weakens Through Late May Levels, BoJ Disappoints With Lack Of Detail On JGB Purchase Plans

The yen has weakened post the BoJ meeting outcome. The central bank stated it would curb its bond buying program but details wouldn't be announced until the July policy meeting. As expected, policy rates were left unchanged.

• USD/JPY rallied from under the 157.20 region to session highs of 157.98 post the BOJ outcome. We last track slightly lower, near 157.85, still 0.50% weaker in yen terms for the session.
• Disappointment around lack on details on the tapering of bond buys has fueled bearish yen sentiment.
• USD/JPY has breached late May highs and key resistance at the 157.71 level. Hence intervention risks may be more heightened if we see further gains in the pair over the next few sessions. A break above 158.00 opens up a retest of earlier highs above 160.00 from a technical standpoint.
• Elsewhere, the USD is mostly firmer, although is steady near 1.0740. NZD/USD has fallen back to 0.6150, with earlier data showing monthly inflation pressures had cooled. Westpac has revised down its Q2 inflation forecast as a result.
• AUD/USD is off slightly, last near 0.6630.
• The BBDXY is now up to 1265.4, slightly up for the session. US yields have regained some ground, up 1-2bps, led by the front end of the curve.
• Looking ahead, the preliminary read of UMich sentiment and inflation expectations data are on tap.