Leaks from the BOJ seem to be on the rise and this looks set to be one of those that will test the waters in gauging market reaction ahead of their decision later this month on January 24th. USD/JPY fell from 158.35 to 157.80 in the headlines here.

The BOJ is said to be considering upgrading its outlook for “core” inflation for fiscal years 2024 and 2025. In doing so, they are still carefully evaluating the data ahead of a decision at the January meeting.

I mean, after the way Ueda communicated last month, you’d think January was definitely off the table. And if you ask me now, I’ll still stand by that.

I don’t see what has really changed in this month to really make them move in two weeks. This is especially so as BOJ officials have continued to hint that they want to see confirmation of progress since the spring wage negotiations. And that will happen closer to March.