Yield differentials pushed USD/JPY back up to 145, a move which likely has BOJ’s Kuroda rolling his eyes. We recently saw a concerted effort from the BOJ, MOF and government to jawbone the yen but with limited success. And part of that success could be attributed to a weaker dollar at the time. And with expectations of higher Fed rates and widening yield differentials in favour of the dollar, it could make further jawboning efforts feel like they’re shouting into the wind. So perhaps the BOJ will be forced to defend the JGB market to weaken their currency once more, because in light of recent developments I suspect ... (full story)