Quotes from the news wire:
The BOJ's announcement to expand easing came as no surprise. (BOJ Governor Haruhiko) Kuroda has been under tremendous pressure from the Abe administration to roll out further stimulus alongside Abe's 28 trillion yen fiscal package earlier this week, a seemingly invincible yen continues to undermine the efficacy of Abe's measures and decisive action at the BOJ is timely.
Since the beginning of the month we've seen the yen slide back against the dollar but the return is far from linear and the intra-day appreciation we're seeing is enough to keep investors on their toes, at present the focus is on Japan's role as host of the G7 summit and pending any egregious missteps there we expect to see a lull in volatility as the market awaits further catalysts.
We are seeing the Nikkei edge up tentatively as the yen slides back down to the psychological barrier of 110 to the U.S. dollar, stateside, the Fed's indication that it is willing to increase rates in June has added extra clarity to the landscape of coming months and we can expect to see a decrease in net sellers for the time being as many look to reallocate risk.
The yen has continued to slide against the U.S. dollar since the beginning of the month and stateside the market has come to view the Fed is amenable to low-rate support, the yen's recent, temporary strength has not yet been forgotten though, and many will be keeping an eye trained on exporters in the run-up to the Bank of Japan's address on the 23rd.