JPY Talk

From the FXWW Chatroom: BAML: In reaction to the BoJ’s decision, overall $JPY has popped to 102.75 high in-line with the equity rally gathering steam, before coming off 102.50 (102.30 last). Nikkei +1.8% and the JGB yield curve has bull steepened with 2y -3 bps and 10y + 5.5 bps. BofAML’s Chief JPY Dealer-Tomo Makita notes that he has been bearish USDJPY for more than a year and this BoJ decision doesn’t make him a bull. He believes that momentum right now can continue with Nikkei having rallied +1.8% but doubts that this is long lived. Note its semi fiscal year end so expect exporter supply on this rally. Generally our desk want to fade UDSJPY strength anywhere up to 104.50/ 60. Key lvls: 103.25 and 104.50 (upside) and 101.20, 100 & 99.50 (downside).

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