ueda boj Bank of Japan 15 May 2023
  • Shortening duration of BOJ YCC targets to 5-year zone from 10-year would be among options if the BOJ were to tweak policy in the future
  • It is possible to keep 5-year yield stable and low even by targeting 10-year yield as long as the shape of the curve is upward
  • Japan's consumer inflation likely to slow ahead but if this projection proves wrong, we will act swiftly
  • BOJ must avoid tightening monetary policy prematurely

Japan remains on a different planet from other central banks. After breaking out yesterday, USD/JPY isn't following through today and is down 24 pips to 139.21.