JPY: No fireworks to celebrate - Nomura

Analysts at Nomura expect the BOJ to keep its policy framework unchanged again this week.

Key Quotes

“Markets should focus on 1) likely changes in the vote composition after board member changes and 2) any comments on the guidelines for JGB purchase operations, but reactions in the FX market will likely be muted. The meeting will also mark the one-year anniversary of the YCC. We thus review YCC’s implications for JPY. We still judge that YCC would not weaken JPY proactively, but it can amplify the impact of external tailwinds, weakening JPY especially under the current low volatility environment.”