• But when the right time comes, BOJ will debate exit strategy and lay out its plan to the public
  • When debating exit strategy, the key will be how to raise rates and reduce balance sheet
  • BOJ will likely combine rate hike and balance sheet reduction
  • However, specific means, timing will depend on various factors at the time

The yen is catching a bit of a bid from Kuroda's remarks here as he makes mention about the BOJ exiting easy policy. I'm not seeing this as anything new though considering that the BOJ has mentioned these steps in the past and they are subject to policy as well as economic developments of course.

But given the sensitivity of the situation globally when pretty much all other central banks are tilting more hawkishly, it seems like the algos are picking up on some of the remarks here.  USD/JPY  has dropped from 127.20 to 126.65 in the past few minutes.