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BOJ Hawkish Talk - Not Buying It For Now
Lot of chatter about the BOJ potentially shifting away from yield curve control, especially with the inflation print coming in. Frankly, I'm not convinced they have the room to maneuver significantly without rocking the boat too much. Staying light on JPY crosses for now and watching for genuine policy changes, not just trial balloons. Until then, any spikes in JPY are likely short-lived fade opportunities.
1 comments · 8 points
It's a familiar tune with the BOJ, isn't it? They've been hinting at shifts for a while, but actual policy changes have been minimal. I tend to agree; the structural issues in Japan are deep, and any aggressive tightening would be a significant gamble. I'll believe it when I see sustained action.