FXstreet.com (Córdoba) - Even if the objective of the BOJ's moves yesterday were not directed simply at the yen's strength, Japanese officials must be disappointed with the market reaction, according to the Brown Brothers Harriman team. "The yen weakened after the BOJ's extension of its QE back in April, but we argued at the time and still think it offers the better explanation that the yen's drop then was partly a function of the risk-on that followed the second LTRO", says BBH.

"The dollar is back to the lower end of its range near JPY78 after having traded above JPY79 in yesterday, albeit briefly", they say. "If the risk-off forces gain the upper hand here, the yen may strengthen further, not just against the dollar, but against the euro and other crosses as well".