- USDJPY at 120.00 acceptable but 125.00-130.00 would widen gap between PPP and spot rate
- not suggesting that BOJ ease further on 30 April but there is room to ease if needed
- if BOJ eased further then yen weakness could not be avoided
- reasonable for BOJ to set its inflation target at around 1% ex oil prices
Cue USDJPY up to 119.98 from 119.65. Offers at 120.00 capping the move so far
EURJPY 126.78 from 126.45. Offers between 126.80-127.00
Hamada did in fact mention PPP ( purchasing power parity) in his comments yesterday as Adam reported here but as usual the market grabs a headline and runs with it
Currently 119.88 and 126.71
