EUR/JPY has broken 120.00 but no follow through initially.
Here is the meat of the reuters story.
The BOJ may pledge to buy assets open-endedly until 2 percent inflation is in sight, without setting a specific date for completing the purchases, the sources said.
Another idea being floated is for the central bank to pledge that it will keep the balance of its asset-buying and lending programme intact even beyond its end-2013 deadline, they said.
The BOJ will also consider scrapping the 0.1 percent interest it pays on excess reserves that financial institutions park at the central bank, according to the sources, who spoke on condition of anonymity due to the sensitivity of the matter. That rate has effectively served as a floor to money market rates and kept them from falling to zero.
So it’s interest on excess reserves not the target rate but it’s still yen negative. These moves would easily push USD/JPY through 90.00 and likely to 95.00 in the coming weeks.
