Citi discusses its reaction to the BoJ policy assessment.
"The BoJ announced the results of the review of its monetary policy, with some tweaks. The outcomes are largely in line with what we discussed so no big surprise for us especially after the media report from the Nikkei news yesterday," Cito notes.
"Essentially, the BoJ would be aiming to promote the yields going higher gradually, which will be a positive for the Japanese currency. However, while US yields are rising more rapidly, its impact on USDJPY will be limited for now, likely leaving the pair elevated at around 109. If rising US yields, boosted by higher JGB yields following today’s BoJ decisions, hit the US stock markets and dampen risk," Citi adds.