Citi on the lookout for intervention points in USD/JPY –
this via eFX
If the BoJ had not announced the new framework last week, pressure
from the market and the politics would have forced it to adopt
additional easing at its next policy meeting on Oct 31/Nov 1. That would
have triggered further JPY strengthening and a fall in stock prices
that would most likely have completely destroyed the BoJ’s credibility.
As it is, because the Bank didn’t exert any concrete measure such as
additional interest rate cuts last week, it could save them for next
year while avoiding such fatal failure.