The Bank of Japan's plan to introduce more clarity to its monthly bond-purchase operations risks limiting its options to control the yield curve, analysts said. Japan's central bank will announce Tuesday the exact dates of its purchases each month with the amounts it plans to buy, people familiar with the matter said Feb. 23. Currently, it gives a range for the number of operations it expects to conduct, and a range for how much debt it will buy in each category.
Odds of a Fed rate hike once again went higher in overnight trading, to 50%, twice the probability seen at the start of the month. USDJPY pushed higher as a result (also due to hawkish comments from Fed Kaplan), with a high of 112.83 printed at last look. In the end, support at 111.50 was not even tested with the low registered at 111.89. The order book remains relatively clear between 112.00 - 113.50 currently, and with the rate hike story likely to gain momentum into the March FOMC, the pair looks likely to return to the upper end of its recent 111.50-115.00 range.