Flash: On the sidelines in USD/JPY until JGB stability - Nomura

FXstreet.com (Barcelona) - Despite the disappointment post BoJ, the press conference by Governor Kuroda showed slightly more determination to stabilize the JGB market, says Yujiro Goto, FX strategist at Nomura.

Goto writes that Kuroda "did not rule out the possibility of introducing longer-term fund-supplying operations if necessary and he suggested he was more confident about the central bank's influence on the entire yield curve." In addition, Goto adds he is optimistic the JGB market will be stabilized to ease the wild swings seen last month.

While current USD/JPY level looks attractive for fresh long positions, "we are staying on the sidelines until we are more confident about JGB market stability" Goto adds.