Dollar/yen falls as the Bank of Japan keeps policy rate unchanged, but there is no rise in expectations for a rate hike, leading to a rebound.

【9/19Market Overview

In Tokyo time, the Bank of Japan decided to keep the policy rate at the expected level of0.50% and2 members of the Policy Board (Board Members Takada and Tamura) advocated a rate hike to0.75%. The news caused a sharp drop. The sales of exchange-traded funds (ETF) were initiated, also fueling selling, sending the index briefly down to147.19 yen. After selling ran its course, short-covering pushed it back up to the147.80 yen area. In European trading, BOJ Governor Kazuo Ueda said in a post-decision press conference that “we’d like to see a little more data before the next policy move” and that there are “some downside risks to the economy,” but he did not comment on the timing of further rate hikes. The dollar/yen moved in the upper 147s.147 area with little movement.NY time, U.S.10-year yields rose, lifting the dollar/yen to148.28 yen. Subsequently, due to weekend position adjustments and profit-taking, the pair traded in the upper 147s with little movement.

【9/22Market View