It might've looked like USD/JPY may have hit an air pocket around 135.00 before nudging lower, but it seems to have coincided with the above headline.
The Japanese central bank is said to be wary of making changes to its infamous yield curve control (YCC) and is said to likely mull if any guidance change can wait or not for later. The report adds that a smoother yield curve is said to suggest no need for a move now, with policymakers seeing elevated uncertainties after the banking turmoil last month.
It doesn't read to me like they were seriously considering a change, so the yen jump is perhaps algo-related more than anything else. However, the slightest idea or hint that policymakers are even considering such a path is enough to suggest that their recent denials aren't that resolute after all.
The groundwork has already been laid for Ueda to take steps to move away from the current policy stance. It is now a question of when, it would seem.
