JPY hitting 130.72, BOJ minutes from March meeting came out today:
Highlights:
WE WILL NOT HESITATE TO ADD EASING IF NECESSARY.
MEMBERS AGREED THAT INCREASED FOREIGN DEMAND AND ACCOMMODATIVE MONETARY POLICY WILL HELP JAPAN’S ECONOMY RECOVER.
MARKETS MAY BECOME RISK-AVERSE IF RISING INFLATION PROMPTS CENTRAL BANKS TO WITHDRAW MONETARY EASING.
IF CHINA’S LOCKDOWN MEASURES DISRUPT FIRMS’ LOCAL PRODUCTION, THEY COULD HAVE A SIGNIFICANT NEGATIVE IMPACT ON JAPANESE EXPORTS.
THE BOJ MUST HELP THE ECONOMY RECOVER FROM THE EFFECTS OF THE PANDEMIC BECAUSE JAPAN IS NOT IN A POSITION WHERE INFLATION CAN SUSTAINABLY EXCEED ITS 2% TARGET.
THERE IS NO NEED TO INCREASE STIMULUS BECAUSE THE ECONOMY IS EXPECTED TO CONTINUE TO RECOVER.
THE BOJ MUST CONDUCT MARKET OPERATIONS TO KEEP LONG-TERM INTEREST RATES FROM RISING.
MEMBERS AGREED THAT SHORT- AND LONG-TERM POLICY RATES WILL REMAIN AT CURRENT OR LOWER LEVELS.
INFLATION IN JAPAN MAY EXCEED 2% IN THE SHORT TERM.
Good article summarizing/explaining situation of USD/JPY:
https://www.barrons.com/articles/japanese-yen-value-51651847360