Kit Juckes, Research Analyst at Societe Generale, suggests that before we get to the Fed (7pm tomorrow, UK time), we get the BOJ (announcement, followed by a press conference at 7:30 a.m UK time).

Key Quotes

“USD/JPY has been dribbling lower and consensus thinking post-January is that the BOJ can’t prevent yen strength and has no ammunition left. I think this is just the other side of the lazy yen bearish view that prevailed at the start of the year when USD/JPY had run out of upward momentum, when inflation expectations were already falling and the BOJ’s policies were backfiring. There’s a chance to try again now, which if grasped can deliver a weaker currency.”