BOJ meet this week - preview - YCC to be abandoned but not until July

I thought Bank of Japan Governor Ueda dropped a huge hint yesterday:

• Has BOJ Gov Ueda dismissed any change to YCC at this week's policy meeting? Looks like it

The info below is from MUFG, via

the folks at eFX.

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• MUFG Research discusses the BOJ BOJ The Bank of Japan (BOJ) is the central bank of Japan. It was established in 1882 and is headquartered in Tokyo.The BOJ's main responsibilities include issuing and managing the country's currency, implementing monetary policy, and ensuring the stability of the financial system. It also acts as a lender of last resort to banks during times of financial crisis. The BOJ sets the interest rate of the country and sets an inflation target, aiming to achieve 2% inflation.The BoO has a long history, with The Bank of Japan (BOJ) is the central bank of Japan. It was established in 1882 and is headquartered in Tokyo.The BOJ's main responsibilities include issuing and managing the country's currency, implementing monetary policy, and ensuring the stability of the financial system. It also acts as a lender of last resort to banks during times of financial crisis. The BOJ sets the interest rate of the country and sets an inflation target, aiming to achieve 2% inflation.The BoO has a long history, with Read this Term policy trajectory and USD/JPY outlook. MUFG maintains a short exposure in USD/JPY going into this week's BOJ policy meeting.
• "Our analysts in Tokyo still expect the BoJ to abandon YCC this year but have recently pushed back the timing to the July policy meeting from June. Recent dovish comments from new Governor Ueda support their decision alongside their expectation that Prime Minister Kishida will call an early election in the coming months which would make it more difficult for the BOJ to adjust policy settings in the near-term," MUFG notes.
• "While the prospect of an imminent shift in BOJ policy has diminished recently, we still believe that the yen will strengthen further this year and view recent weakness as only temporary. We expect USD/JPY upside to be capped between 135.00 and 137.00 in the near-term," MUFG adds.

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USD/JPY update:

The Bank of Japan meeting is on the 27th and 28th.