The Japanese yen is falling further on BOJ governor Ueda's press conference, with USD/JPY climbing from 153.10 to a high of 153.50. On the daily chart, there is some resistance around 153.23-27 from the highs two weeks ago. But if buyers can hold a firm break/close above that, it tees up an upside breakout for the pair in the second half of this week.
The BOJ announced no change to policy earlier today, with board members Takata and Tamura once again dissenting. But as new prime minister Takaichi slowly exerts her influence, is the timing window for the BOJ slowly closing?
Amid her policy intentions, the kind of fiscal "firepower" that she may unleash reduces the pressure for the BOJ to tighten policy in the short-term. Thus, the central bank has less incentive and urgency to act for the time being.
And Ueda's lame excuse of continuing to allude to US tariffs putting them off will only serve to reaffirm the plot of not crossing the government.
