USD/JPY could edge higher if no BOJ risk event

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With the BOJ on hold, it’s all about yields

The market generally believes that there will be no major events at the Bank of Japan meeting on Friday, and expectations for interest rates or yield curve control remain unchanged. But USD/JPY follows yield spreads as it always does, and we like to buy five-year Treasuries on any weakness, no matter what the Fed does.

USD/JPY could edge higher on a no-risk event from the BOJ meeting, but if anything, it will fall sharply.