BoJ takes (yield curve) control amid global bond sell-off - ING

The BoJ made itself clear on Friday that the 0% target for 10-year JGB yields would be aggressively defended, notes the analysis team at ING.

Key Quotes

“JPY bears welcomed the move and USD/JPY has cemented itself as the best vehicle to express a $ view. We doubt Japanese data (current account, machine orders) has much impact.”

“We expect a low vol rally in USD/JPY all year. The biggest risk to the view looks to be a correction in equity markets or a dramatic escalation in the confrontation with N. Korea. USD/JPY has proved resilient so far.”