The Bank of Japan has a problem. That problem is the weakness in the JPY. You can see from the index chart below that JPY weakness has been pronounced this year. The JPY being weak is great for Japan’s export economy. A weak domestic currency means that the country’s exports are of better value abroad. However, for the domestic economy, it means imports are more expensive. So, Japan’s domestic import market is pressured by the weak JPY and that creates political pressure to address it. Soaring US10-year yields, JGBs being capped, higher oil prices (Japan is a net importer of energy), and leveraged FX moves on a weak ... (full story)