It's starting to get interesting with the Japanese Yen again. After strengthening over 10% from February 1st to mid March, the USDJPY has given back about half that move and is on the verge of breaking below 80.
This article from Bloomberg stated that the strengthening of the Yen from the past week or so was due to the BOJ holding off on further easing.
In our March 13th post we commented on how gasoline prices in Japan had risen to over $7/gallon. We wouldn't be surprised if this one of the factors that caused the BOJ to show some restraint. Japan has some of the highest gasoline prices in East Asia, second only to Hong Kong.
As has been the pattern over at least the last 9 months, when the USDJPY falls the Nikkei comes with it. The magnitudes don't always match up, but in recent times they generally move in the same direction.
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