The conditions for a higher USD/JPY have been perfect. US inflation continues to rise above expectations (and at an alarming rate), whilst the Fed’s 50 and forthcoming 75-bp hikes are doing little to dent it. But we also have the BOJ fixated on an ultra-loose monetary policy, with both the central bank and government of Japan openly backing a weaker yen. And whilst there was some speculation the BOJ will be forced to intervene (to strengthen the currency) or adjust their yield curve control, no such action has risen whilst rhetoric from the central authorities of Japan favours a weaker currency. {chart} So today we ... (full story)