BoJ makes modifications to interest rate policy - BTMU

Analysts at Bank of Tokyo Mitsubishi noted that the BoJ modified its negative interest rate policy this week by including Money Reserve Funds and doubling the size of Loan Support Program borrowings in the Macro Add-On Balance.

Key Quotes:

"The Fed also left monetary policy intact. After the ECB
expanded easing on 10th March, the BoJ and Fed were more conservative in their
monetary policy operations amidst high market volatility. USD/JPY may settle down and move along with real money flows ahead of the Easter holiday next week.

Japanese exporters JPY buying has been picking up gradually. Real flows may
generate sizeable yen buying pressure, weighing further on USD/JPY ahead of the
fiscal year-end.