Technical Analysis

Report – The BOJ will review the side effects of easy policy next week

Yomiuri in Japan says the Bank of Japan will review the side effects of its monetary easing at its policy meetings next week.

The Bank of Japan meet on the 17th and 18th of January.

USD/ JPY is down a few points on this news. A scaling back of easy policy from the BoJ is a tailwind for the yan.

Indeed, traders began moving to expect a change to BoJ policy back towards the end of October last year. If you’ve been following along you’ll be aware of the chatter of a change to come once Bank of Japan Governor Kuroda’s term expires in April of 2023. The chatter moved to confirmation as PM Kishida has said a change to the mandate is definitely coming.

In December the BOJ ‘tweaked’ its YCC policy to allow JGB yields to rise.

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