The Bank of Japan have laid out their JGB-buying plans . 5-10 year purchase increase
- maturity 1-3 years 400 bln yen. Unchanged
- 3-5 years 420 bln yen Unchanged
- 5-10 years 450 bln yen. Up from 410 bln.
The JPY has weakened on the larger purchases in the 5-10 year maturity range.
Technically, the USDJPY has moved back above the 100 bar MA on the 4 hour chart at the 114.755 level AND the 38.2% of the move down from January 3rd high at 114.837. Yesterday, the price held that resistance level on the test.
That area is now support for the pair.
Meanwhile, 10 year JGBs are lower by 1.8bp after climbing to the highest level since Feb 2016 in yesterday's trading (see chart below).
