At their monetary policy meeting coming to an end on Friday, the Bank of Japan (BOJ) is expected to extend the long-term flat rate band, to allow rates to move around the 0% target, a newspaper said. Nikkei Thursday.
The BOJ is said to allow long-term moving averages in the range of around 0.5 percentage points compared to around 0.4% now.
The central bank also appears to be withdrawing a pledge to buy a trading currency (ETF) at an annual rate of JPY6 trillion ($ 55 billion), the Japanese said daily.
USD / JPY response
USD / JPY: 15-minute chart
The Japanese yen raised new bids on the above headlines, knocking USD / JPY back below 109.00.
The spot has eroded early gains and is now trading flat at 108.80, after hitting a daily low of 108.62 in a rebound to the BOJ-like action report This coming Friday.