USD/JPY flows: USD driving while BoJ meets

After the back and forth action in the overnight New York session, USD continue to rebound and is driving the USD/JPY as market participants awaits Friday's BoJ decision. The market consensus would be no change in rate but a cut in JGB purchase where our central forecast includes a 10bps hike to keep the latest wage-inflation dynamics in check. U.S. Treasury Yields are higher across the curve while JGB yields slips.

USD/JPY is trading 0.2% higher at 157.03.