USD/JPY: watching BoJ's stealth tapering very closely - Nomura

Analysts at Nomura noted that the JPY is trading strongly after the BOJ’s further stealth tapering. 

Key Quotes:

"The decision has actually widened rate spread, as foreign yields reacted more positively, but the higher implied volatility of JGBs is likely hurting USD/JPY." 

"The BOJ’s next action will be important."

"If the BOJ conducts another fixed-price JGB purchase operation at unchanged yield levels, volatility may calm down, supporting JPY crosses."