The dollar yen was bought in the Tokyo market. At the BOJ decision meeting, growth prospects were raised, but there was widespread recognition that the market was within expectations. Market officials said last Friday that the Bank of Japan was discussing the normalization of monetary policy and could raise interest rates before reaching the inflation target of 2%. I was clinging to my mind, but today’s announcement did not give me a hint. The market seems to have reacted to yen selling as disappointing. Regarding this point, I would like to pay attention to what kind of answers there are with reporters at the BOJ Governor’s meeting.
It is also responding to the trend of US bonds that have resumed trading. Yields on 10-year US Treasury bonds rose and trading resumed, temporarily hitting the 1.85% level. The dollar exchange rate, which was initially bought by the dollar yen alone, has spread to the dollar buying in each major currency such as the euro dollar and the pound dollar. Whether or not this pattern will continue in overseas markets after this is likely to be a key point.
At today’s BOJ decision meeting, I was selling USDJPY in consideration of the possibility of turning to a rate hike, but it did not meet expectations. USDJPY selling has already stopped out.
Regarding JPY, we will reset the buy line once and return to the sell line again.
