The scale of the sell-off of global bonds prompted the BoJ today to announce an unscheduled bond-buying operation. If the Dollar was performing more strongly in broader markets, there’s a chance such a modest operation may have propelled USD/JPY through the 150 level.

We are wary of this Dollar sell-off given this is month-end and Dollar selling could fade quite quickly.

The modest BoJ bond buying announcement today does highlight the bind that Japan is in and a broader rebound of the USD seems more likely than not at this juncture which will likely mean a break above the 150 level.