USD/JPY 5 mins chart
After he supposedly let slip on a “quiet exit” in the interview here two weekends ago, there were some quarters of the market that reacted strongly in thinking that a change is afoot at the BOJ. But when it comes down to the line, Ueda is once again disappointing yen bulls. With the chance to clarify his remarks today, he said that during the interview, the point made was that the BOJ needs to patiently continue with easy policy. Surprise, surprise. Not!
I had outlined my reservations about Ueda and the BOJ right after that interview in these two posts here:
Ueda has had six months and numerous opportunities to angle towards a policy pivot. But at each and every point when he is expected to do so, he hasn’t delivered. And today is one of those days.
Sure, it might still ring true that he is sticking to the idea of a “quiet exit”. I guess he just really is putting plenty of emphasis on the “quiet” part. But in a time when central bank communication is a critical function of markets, he isn’t helping himself here.
USD/JPY is now up to fresh highs on the day to 148.38 and seeking to rise to fresh highs for the year as it continues the path towards the 150.00 mark next.