You’d be hard pressed to guess by the price action that the BOJ eased monetary policy last night. We sit in tight ranges, weighed down by continued Japanese repatriation in advance of the fiscal year-end in Japan at the end of the month. Traders report a crowded order book, especially around the 90.70/80 level where Japanese corporates are solid sellers of dollars.
Looks like the market is front-running those orders (selling ahead of them) and happily taking dollars back in on dips to the 90.40 area. Like with shampoo, just rinse and repeat…