A good take on the yen action today via Bloomberg:

(in brief)

  • Minor tweak in a regular Bank of Japan bond-purchase operation
  • Enough to send the yen climbing the most in almost a month
  • Even though evidence weighs overwhelmingly against the adjustment signifying anything meaningful

(a good point - the BOJ is still a LONG way from its inflation target)

And:

  • What the yen's spike does show is just how big a move will come whenever the central bank does telegraph a fine-tuning in its stimulus program

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The spike in the yen, albeit a small one in the big picture, is a reason the Bank of Japan is reluctant to remove the annual 80 trillion yen JGB buying target from its policy statements.

The target is irrelevant under YCC. Regular readers of ForexLive will know that this is a regular rant of mine.

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USD/JPY update: