USD/JPY below where it was when BOJ offered to buy JGBs in unlimited amounts

The Bank of Japan offered to buy 10 year JGBs at a yield of 0.11%

• Unlimited amount

You'd think such huge monetary easing would be yen negative (and it "should" be) .... but no .... usd/yen is now lower than where it was pre announcement

In early January when the BOJ reduced its bond buying the yen surged. The opposite dynamic is not playing out - in part because the positioning is so much different. In early January the market was hugely short yen. The market is not hugely long yen now, not at all.

I posted earlier the BOJ is not fooling anyone with these increases in JGB purchases ... they still aren't.

Update:

Mind you, Japanese exporters are sending a thank-you note to the BOJ for helping pop the price towards their offers ....

Join the conversation in our new Telegram group