BOJ Surprise Move Ripples Across the Board

It was the BOJ move of buying additional ETFs to expand their asset purchases that moved the Nikkei 225 Average towards the 19900 & for the USDJPY @123.55 before retreating quickly lower. A whipsaw where volatility on the last trading day for the week was a total surprise for the market. This move has affected all cross rates related to the Japanese Yen which saw traders frantic on what the next price swing would be made in the US market.

The Bank of Japan's massive stimulus target still remains, while expanding the types of assets it purchases to increase the probability that they meet their target objectives. Utilizing the ETFs is becoming more sophisticated for BOJ in companies that are investing in physical and human capital is an amazing new approach for us to hear from the BOJ out of the traditional forms. Besides, buying another ¥300 billion ($2.45 billion) of exchange-traded equity funds, in addition to the ¥3 trillion in ETFs it has purchased since late 2014 is really a surprise for the market.

USDJPY OVERLAY JPN225 ON THE BOJ SURPRISE MOVE