USD/JPY flows: Quiet before BoJ

The USD/JPY is relatively steady on Tuesday Asia session as we wait for the BoJ decision. Our central forecast only sees the BoJ to reduce bond purchase by 1-1.3 trillion JPY, accelerating to 3 trillion in two years and we do not see the BoJ to hike rates at the same meeting given the current inflation picture and soft consumption.

USD/JPY is recovering partial July losses to avoid getting wrong footed by BoJ again. The pair is trading 0.21% higher at 154.33.