It’s been a rough month for the Bank of Japan. In an effort to inject some much-needed inflationary pressures into the world’s third-largest economy, Japan’s central bank opted to join the negative interest rate club in late January, likely anticipating that it would lead to continued to depreciation in the Japanese yen as a side benefit. As it turns out, that hope couldn’t have been further from the market’s actual reaction. The initial post-interest-rate-cut spike in USD/JPY stalled out the next day just below 122.00, and the pair has since fallen by more than 1,000 pips to a low near 1.1100 in the last four weeks. ... (full story)