BOJ Miss - Sell GBPJPY @Market price; 129tp1 - up to 800pips.
1. A BOJ miss can be considered as delivering the median expectations e.g. 10bps cut to the depo (-0.2%), 10bps cut to the LSP (-0.1%), Yen10trn increase in monthly JGB purchases & 50% Increase in Annual ETF purchases e.g. 3.3trn-5trn. Fiscal Stimulus Yen10-15trn.
- The package above or less...
Looking to buy the GBP/JPY this morning as the CPI y/y figure is expected to show an increase in inflation which could bring forward the expectation of an interest rate hike from the BoE. On the other side of the trade the JPY is particularly weak at the moment with a poor Prelim GDP reading on Sunday evening and expected intervention from the BoJ in the FX market...