Japan data - November Tertiary Industry Activity Index falls 0.2% m/m (prior rose 0.2%)

This data is released by Japan's Ministry of Economy, Trade and Industry (METI).

• measures the total value of services purchased by Japanese businesses over the month

The focus is on the Bank of Japan's policy decision that'll be handed down tomorrow:

Previews:

• Ahead of its monetary policy meeting beginning on Tuesday the BOJ to buy JGBs today
• TD say still plenty of room for yen gains, see as low as 120 by the end of March
• Bank of Japan preview - "may be on the verge of its biggest policy change in decades"
• The hyenas are circling the Bank of Japan
• 10-year JGB yields still pushing the limit for now
• The risks are skewed towards disappointment for yen bulls this week

• Goldman Sachs ask how low could USD/JPY fall if the BOJ exit YCC (spoiler, under 125.00)

The BOJ was active in the JGB market again today:

• Bank of Japan bids to buy 5-10yr to maturity JGBs, unlimited amount

From today's wrap:

USD/JPY rose with the BOJ JGB buying, from lows circa 128.25 it hit highs above 129.00. Overnight implied volatility ahead of tomorrow’s meeting has hit a six-year high of 51%. Volatility is assured into and after the BOJ statement.