Yen Rises 0.4% as Traders Brace for BOJ Policy Call

Japanese markets were subdued ahead of the Bank of Japan’s policy announcement due later on Thursday. Futures linked to 10-year Japanese government bonds slipped after a series of modest gains earlier in the week that had been driven by a technical rebound and a rally in U.S. Treasurys. Currency trading was more decisive: the yen strengthened about 0.4% to ¥X per dollar in early Tokyo dealings as investors trimmed short positions on expectations the BOJ may tweak its ultra-loose stance. Gold also edged higher on light position adjustments, reflecting a mild flight to safety. Traders said the moves largely reflect position-squaring rather than a clear directional bet on the outcome of the BOJ meeting, where policymakers are expected to debate the future of negative interest rates and yield-curve control.