The firm argues that the BOJ appears to be less accommodative than the ECB
In reaction to the BOJ decision earlier, the firm's head of global market research, Minori Uchida, says that the yen's limited strength - despite expectations of the Fed to cut rates - have allowed the BOJ to keep rates on hold today.
Uchida argues that the BOJ appears to be less accommodative than the ECB last week, as well as the Fed, which is expected to cut rates tomorrow. Adding that the BOJ may have decided to refrain from changing policy this time as the impact of revising its forward guidance would be limited and also storing up stimulus for future use.
He also notes that the floor for USD/JPY will be around 108.50 ahead of Kuroda's press conference later today (around 0630 GMT) and ahead of the FOMC meeting tomorrow.
