BOJ maintains JGB buying, JPY drops further

At its routine bond buying operation conducted on Wednesday, the Bank of Japan (BOJ) maintains 1-3-year Japanese Government Bond (JGB) buying at 350B Yen while 3-5-year JGB buying was also maintained at 400b yen.

The USD/JPY pair caught a fresh bid wave and jumped to daily highs at 107.42, tracking the renewed strength in the US dollar index and 10-year Treasury yields, as less dovish comments from the FOMC dove Bullard continue to underpin.