USDJPY 1 hour
USD/JPY has fallen to the lowest since October 11 on signs that Bank of Japan will boost its yield cap above 1%.
On Friday, two reports said the BOJ was planning to boost its inflation forecasts and today, Nikkei reported that the central bank will consider policy tweaks. That could mean the ceiling on yield curve control is lifted above 1% to a higher zone or removed altogether.
Importantly, the BOJ could also hint at the early steps of an interest rate normalization.
Perhaps that's too much for such an early stage but crowded USD/JPY longs began clearing out on Friday and they're exiting again today.