Weekend reports have intensified the discussions surrounding the BOJ furthering its balance sheet expansion.

expanding the balance sheet is a strong possibility as it matches the reflationary policies supported by Abe’s nominees for the top jobs, who have argued that printing money more aggressively will give a psychological boost to the economy.

  • Easiest way to expand the balance sheet is to buy longer-dated government bonds

Reuters

USD/JPY is little changed from NY’s close. There is some data coming up today (previews soon) and at 0030GMT there’s the confirmation hearing for BOJ governor nominee Kuroda in the lower house of the Japanese parliament, at which we’ll hear directly from Kuroda himself.