IMF says further, gradual, BOJ short-term rates hikes should continue, data dependent

IMF Executive Board statement on consultation with Japan:

• Further hikes in Japan’s short-term policy rate should proceed at a
  gradual pace and be data-dependent
• Japan’s
  long-standing commitment to flexible exchange rate regime will help
  absorb shocks, support monetary policy’s focus on price stability
• BOJ’s
  state-contingent purchases of JGBs will help mitigate excessive
  shifts in yields that could undermine financial stability during
  policy transition
• Clear, effective
  communication strategy by BOJ that continues to underscore factors
  behind pace of rate hike will be key

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USD/JPY update, moving sideways circa 156.20 ish:

This article was written by Eamonn Sheridan at www.forexlive.com.