Citing a senior official from Japan’s ruling Liberal Democratic Party (LDP) on Monday, Japanese media outlet – Jiji reported, “the Bank of Japan’s (BoJ) policy tweak sends a message to exit from easing finally.”

The BoJ decision could throw cold water on the Japanese economy and needs high attention, the official added.

Market reaction

On the above comments, USD/JPY rallied hard to test 142.50. At the time of writing, the pair is adding 0.85% on the day to trade at 142.35.