The summary points from BoA’s Bank of Japan preview:
- The back-up in global rates is putting pressure on YCC once again, leaving the BoJ with a difficult choice
- While major policy revisions are unlikely, we expect another YCC tweak with base case an increase in 10yr JGB ceiling to 1.5%
- Continued upward pressure on JGB yields and BoJ’s continued policy intervention likely; hard for JPY to rise
Earlier:
USD/JPY was sent lower on that Nikkei report (in the linked posts):