The longer we wait for the BOJ announcement the twitchier yen is going to get - here's why

The wait for the Bank of Japan announcement is stretching on longer than normal. Not wholly unexpected:

• We are well inside the expected time window for a BOJ announcement

The thing is traders and investors are holding off trading in JGBs, yen, and other Japan assets while we await the Bank of Japan decision. This makes sense, not many of us are loading up ahead of the announcement.

The result in markets is spreads widening, and choppy, gappy price action.

Hang in there folks!

ICYMI:

The latest chatter we have is here:

• Japan media report that the BOJ will conduct an examination of past monetary policy

And the prior previews are here ICYMI:

• Bank of Japan monetary policy decision due today - preview ("target 128 for end of Q2")

• Preview - BOJ decision due Friday, 28 April 2023: "cannot fully rule out a change" in YCC

• BOJ meet this week - preview - YCC to be abandoned but not until July
• BOJ meeting preview - Deutsche Bank expect a policy revision, 3 scenarios
• Has BOJ Gov Ueda dismissed any change to YCC at this week's policy meeting? Looks like it

• BOJ meeting this week - preview - the BOJ may move on a 5-year JGB target option