The market is skeptical of BOJ and government actions
The market is still feeling burned from the whipsaw in USD/JPY after the surprise BOJ action in January. Every note I read is 'skeptical' the BOJ and/or the government can do enough to get USD/JPY going higher again.
The latest headlines showed the Japanese government tossing another $28B onto the stimulus bon fire and it was good for about 30 pips in USD/JPY.
The BOJ has effectively monetized a large portion of Japanese government debt and will re-load the bazooka with something else this week and the market is prepared to shrug it off.
It's as if this market has seen so many central bank nuclear bombs that it's no longer impressed by the mushroom cloud.
