Despite the removal of the negative interest rate policy, the yen depreciation is continuing.

Speculation about the BOJ's removal of negative interest rate policies had already been disclosed last week.

The actual rate hike statement and BOJ Governor Ueda's remarks at yesterday's press conference clarified that the background of short-term large-scale monetary easing remains unchanged and that there will be no significant rate hikes.

Overall, due to the more dovish remarks than the market had expected, Japanese government bond yields surged yesterday and the USD/JPY exchange rate also soared.

Market expectations for hawkish FOMC statements by Senior Bao tonight are gradually increasing, and the dot plot to be released tonight is likely to indicate only 2 rate cuts this year instead of the market's expected 3. The interest rate differential between the US and Japan is unlikely to shrink significantly in the short term, which is also supporting a strong dollar and a weak yen.

Of course, there are also other factors such as short-term market maneuvering and covering of shorts in the foreign exchange market.The core logic behind it all is still the two mentioned above.