BOJ's subtle dance and the CADJPY
Watching the Bank of Japan again. Feels like they're trying to whisper sweet nothings into the market's ear about 'sustained inflation' while still clinging to their yield curve control. The market, of course, is interpreting this as another opportunity to test their resolve. Saw $CADJPY dip a bit today, currently around 114.22202, which is interesting considering the broader strength we've seen. Seems like every time they hint at a policy shift, the yen gets a shot in the arm, only to give it back later.
Keeps CADJPY on my radar. If the BOJ actually tightens, even slightly, or if global risk sentiment really sours, we could see that support around 113.982 tested again. Conversely, if this is just another head fake, the carry appeal might pull it back towards 114.633. Just trying to figure out if it's a real pivot or just more Kabuki theatre.
That CADJPY dip is definitely worth watching, especially with the Yen strength across the board. I'm wondering if the market's just pricing in a slightly more hawkish stance from the BoC now too, adding another layer to the CADJPY dynamic.