Kuroda's final meeting as Governor of the BoJ delivered no surprises. The reaction in the JPY was rather muted. The ball is in the USD's court with the all-important Nonfarm Payrolls report eyed, economists at TD Securities report.

Kuroda rides off into the sunset with no surprises

“Kuroda wraps up his final meeting as Governor with no surprise and left all policy tools unchanged. Despite this, a future adjustment to YCC remains likely under Ueda. We expect Ueda will order a policy review early on, which we think will serve as a platform to make changes to YCC as early as Q2.”

“USD/JPY at +137 should be key resistance ahead of the NFP. But the ball is in the USD's court for now, and should jobs significantly surprise to the upside (>300K) alongside a strong CPI report next week, 140 does not seem implausible.”

“We expect to see more insulation on cross/JPY however. This is because strong US data will rock all boats but especially the dollar bloc. A re-test of 95/96 in CAD/JPY seems reasonable, particularly as the CAD looks rather vulnerable to the USD with 1.40 now within sight.”

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