Good question. My take is that the market has been expecting at least JPY 5 trln in additional bond buying for the last three weeks. IN recent days, the hope was for as much as JPY 10 trln…
The reaction is the realization from market players that this is a return of the typical timid BOJ just at a point when the market was beginning to believe the BOJ was newly emboldened.
It’s more a question of style over substance…
USD/JPY is expected to see demand from the likes of Kampo on any approach of 80.00.
