In a nutshell:
- The BOJ has firmly set the 2-year timeframe for achieving the inflation target of 2%
- Going to double the size of the monetary base within 2 years
- Within 2 years it will have doubled the size of its holdings of Japanese government bonds & ETFs, and also buy more REITs
- Buy longer dated bonds, 10 years, , 20 years, 30 years, even out to 40
- APP and Rinban got merged
- bank note rule is in the bin
–
This should trigger much higher stock prices and a weaker yen. It isn’t going to be a straight line.
For today;
Support 95.65/85, but initially 95.90/96.05
Resistance around last night’s highs initially but I expect once Tokyo is in it trades higher
96.75 through 97.00 selling ahead of 97.00
