More thoughts on the Yen - BBH

Analysts at Brown Brothers Harriman explained that he yen's strength coupled with disappointing inflation data may raise the risk of additional easing by the BOJ later this month.

Key Quotes:

"The poor reaction to the unexpected easing--adoption of negative rates--at the end of January, may give BOJ officials cause to pause and reevaluate their tools and tactics.

We note that the initial yen rally in the first half of February exhausted itself, and that dollar-yen traded broadly sideways from mid-February through late-March. The recent leg up by the yen at the start of the month may be a combination of seasonal pressures and speculative attention.

The seasonal pressure seems to be ebbing and, as we noted, over the last two weeks, speculators in the futures market have added to both long and short positions."

Tokyo all spent-out: USD/JPY limited support until 105.00