From my broker, USD/JPY caught a whipsaw lower to 148.72 before reversing that move to steady around 149.40 levels again now. The reaction is to the headlines here. It’s a bit of a sensitive one but it just confirms what we already should know heading into the BOJ policy meeting later this month. From last week:

• BOJ mulls raising FY 2023/24 core CPI target to ~3% from 2.5% forecast in July – report
• Japan media ICYMI – Bank of Japan considering raising its inflation outlook to nearly 3%
• BOJ’s Noguchi: We have no choice but to raise inflation forecast for fiscal year 2023

It looks like this is more to do with the algos being sensitive near the 150.00 mark more than anything else.

This article was written by Justin Low at www.forexlive.com.