April 19, 2023
BoJ unlikely to decide to change its curve control program
The BoJ, in a message to the market, indicates that it is unlikely to decide to change its curve control program, let alone exit, following the recent banking crisis. This means maintaining a very loose monetary policy in Japan and could work against the JPY in the near term. Moreover, there has been market pressure to buy the dollar in the face of the increasing likelihood of a hike in May. BoJ meeting 28 April.
USDJPY quickly shot above 135, but there was probably a profit taking there. On the other hand, yields suggest that USDJPY should be right at these high levels.