The yen is surging in the past few minutes and is the top-performing global currency.
The surprise 50 basis point hike from the Swiss National Bank today has isolated Japan is the lone adherent to extremely easy monetary policy. It's made the country a key battleground and the site of Soros-style bets against Japanese bonds.
USD/JPY is down 110 pips to 132.75 in the second day of declines. The pair hit a 24-year high earlier this week and has been a one-way trade since early March.
The ongoing rout in risk assets and rising global inflation is breathing some life into the yen but the move from the SNB is adding fuel to the fire. Short-yen is a crowded trade and the BOJ decision is coming up on Friday. Eamonn has a preview here.
If we do get any kind of surprise -- or even a hint at a shift -- then we could see a rapid retracement in the yen.
