From the Bank of Japan’s recent monetary statements, one might assume that Yen bears have hit a brick wall. The BoJ refrained from adding more stimulus and kept its ¥80 trillion annual bond purchases unchanged.
The BoJ’s reticence seems a disquieting throwback to the monetary policy of the Shirakawa days. Then, the BoJ was in a clear state of denial and refrained from making extra stimulus. Now, though it may seem history is repeating itself, this is not the case. Governor Kuroda is certainly no Shirakawa, and the Yen is not about to get stronger.
What Is The BoJ Really Doing?
At first blush, it just doesn’t add up. How can this be the same Haruhiko Kuroda? The man who announced ¥80 trillion in stimulus in a jaw dropping move suddenly and inexplicably turned passive. But, as the saying goes, appearances can be deceiving. In fact, the BoJ is really making a very calculated move. Continue reading "USDJPY: Bullish On The Dips"