USD/JPY strengthened as the BoJ scrapped the 1% ceiling for the 10-year government bond yield. BoJ Governor Ueda expressed fear about inflation not reaching long-term targets. Japan’s Chief Cabinet Secretary Matsuno engaged in some verbal intervention to bolster the yen. Following the adjustment to the yield curve control (YCC), BoJ Governor Kazuo Ueda adopted a notably dovish stance. He expressed apprehensions about inflation not definitively reaching the BoJ’s long-term targets.
70 at the time of writing. Additionally, the market anticipates the imminent policy decision from the US Federal Reserve (Fed), pointing toward the central bank maintaining its current monetary policy stance in the Wednesday meeting. Investors will closely watch the Federal Open Market Committee’s (FOMC) post-meeting communication, eager for insights that could help gauge the potential path of interest rates.
USD/JPY IG Client Sentiment: Our data shows traders are now at their least net-long USD/JPY since Oct 03 when USD/JPY traded near 149.10.Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USD/JPY-bullish contrarian trading bias. Read more ⮕