This comes after the headlines here, which is disappointing yen bulls once again – whom have kept up hope for a potential policy tweak next week by the BOJ. 10-year JGB yields have also fallen down to 0.45% from around 0.48% at the start of the day. I’ve been warning about this since last week already:

And now we’re starting to see that come into effect with a week left before the big decision. But if markets are bailing on hope that the BOJ is going to do something, there is scope for a sharper correction still in yen pairs.

We’re now approaching the 50.0 Fib retracement of the downswing this month at 141.15 but the next target will at least be the 142.00 mark for USD/JPY.