The Bank of Japan have made their highly anticipated decision 29 July
It's been a lively session in Asia and the BOJ's failure to appease the yen bears, and indeed their own government, has sent yen pairs understandably into a spin.
I've noted here previously that I believed the BOJ was running out of wiggle room and so it proved. Abe & Co had been keen for them to step up to the plate but Kuroda and his team didn't read the script fully, and even if they did were just unable to produce on demand.
We can expect more volatility as European desks digest the news and I don't expect us to be much the wiser by the end of the day but I favour selling into yen-pair rallies still.
Attention will now turn to the stimulus package to be announced by Abe on 2 Aug and conjecture will begin on whether they now choose to add more to the reported JPY 28trln in the wake of being disappointed by their central bank.
USDJPY currently 103.13 after a low of 102.70 and rebound to 103.82.Expect core pairs to be pulled around by further volatility. No clear picture to trade off so caution advised but opportunities for those nimble and disciplined enough.
Kuroda press conference scheduled for 06.30 GMT so we might learn more from that.
