The Bank of Japan's upcoming meeting (Jan 22 – 23) will not see an end to negative rates

<p>The Bank of Japan is next meeting on January 22 and 23.</p><p>The deadly New Year earthquake has finally extinguished hope (there's that four-letter word again) for an end to BOJ negative rates at this meeting. I find it difficult to believe that anyone even remotely in touch with relevant BOJ/yen news ever entertained thoughts of such a move in January, but I do welcome ill-informed speculation in markets. I love it when the competition is clueless. </p><p>Anyway. </p><p> Mizuho Bank:</p><ul><li>“Although there must be quite a few foreign investors who have been anticipating the end of negative rates in January, under these circumstances, the BOJ will almost certainly not move this month,”</li></ul><p>Daiwa Securities:</p><ul><li>"negative rates … January move seems even more impossible"</li></ul><p>The ending of the prospect of a January move away from negative rates from the BOJ has been cited as a reason for the yen fall, with USD/JPY back towards 144.50. Don't forget to add in the equally insane thoughts of a January rate cut from the Federal Open Market Committee (FOMC). The prospect of that has dropped to zero too, thankfully. </p><p>The USD/JPY carry is still circa 5.5% and will be for a few months to come. </p><p>USD/JPY update. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.