• Japan economy picking up as a trend
  • But uncertainty is still extremely high
  • BOJ watching closely impact of FX moves on economy, prices
  • Monetary easing needed to support the economy, achieve price target

No change in the commentary from the BOJ. That will keep the policy divergence play intact but there are still risks to intervention if the yen does capitulate further. For now, USD/JPY is still holding lower on the day around 134.75, after having dropped from the highs of around 136.70 earlier in the week.