By Vassilis Karamanis, Bloomberg Markets Live reporter and strateigst
The yen looks to have set a short-term top versus the dollar following Bank of Japan forward guidance and ahead of Japan’s ruling party leadership election on Friday.
It only takes a quick glance at the charts to see just how the central bank’s policy meeting last week wrong-footed markets. While no change in interest rates was expected, traders were positioned for a hawkish hold, in contrast to the Federal Reserve that began its policy easing cycle this month.
