Summary
The BOJ has finally exited its large-scale monetary easing program and reverted to "normal monetary policy." The yen continued to weaken despite this, with the USD/JPY rising toward 152. This is probably because the growing view that the Fed will push back the timing of a rate cut is holding back a narrowing of the divergence between yield spreads and monetary policy in Japan and other countries. Considering the growing divergence to date, we expect a shift in the USD/JPY trend will require a change in US monetary policy, where rates are high in absolute terms compared to Japan, but it seems the Fed is likely to wait a little longer before making a move.
