BOJ to hold emergency policy meeting tomorrow

The central bank is expected to announce a new program to facilitate bank financing to expand to small businesses that have been affected by the fallout from the coronavirus outbreak.

In short, it is yet another measure to reinforce the conditions of liquidity in the financial system, in order to relieve the tensions of financing of the companies.

I do not believe that the Kuroda & co. will offer surprises beyond that, so expect the other monetary policy tools to remain unchanged. They will likely use the meeting to communicate details of the new program, if applicable.

For USD / JPY, continue to keep an eye on the elusive handle of 108.00 in any case.