One of the Japanese banks put out an interesting research note this morning reminding investors that it is not unusual for the BOJ to follow up an emergency meeting with further action at its next scheduled meeting. The BOJ added a small program of quantitative ease at the December 1 emergency meeting so perhaps we can look for another dose of QE at tonight’s meeting.
USD/JPY has trended higher since that meeting, so more of the same should help keep the mild uptrend intact. 90.70 is the big hurdle for USD/JPY to overcome near-term. Corporate hedging from Japanese exporters has slowed the rally above 90, a level where many companies have budgeted for USD/JPY. Above that level, any gains are gravy…
