Today’s Japanese CPI report certainly did not push the Bank of Japan’s hand. With prices up 3.0% for the year (estimated), there is no need to change tactics. In addition, the BOJ increased its regular bond purchases, which indicates that nothing new comes with next week’s BOJ decision. At the same time the US dollar is happy. The yield on ten-year government bonds rose another 8.8 points to .31 percent today and 30 basis points in three days. USD/JPY, meanwhile, added 172 points to 151.86, its 13th consecutive day of gains. USDJPY Daily Chart It can’t last forever. At the same time, this is a clearly principled step. The only way to change that is to change the fundamentals, and only the BOJ and the Fed can do that.