USD/JPY flows: BoJ On Hold

As most anticipated, the BoJ has decided to keep rates on hold in their December meeting. There is little forward guidance in the statement which seems to suggest the BoJ is taking its time or the medium term terminal rate may not be 1% as market thinks. The BoJ also released their review of monetary policy from a broad perspective and it concluded that 2% target of price stability should remain and the bank should keep enough room for cut in case of need to stimulate the economic amid crisis.

USD/JPY is trading 0.22% higher at 155.16.