Japanese Yen surges against US Dollar as BoJ set to adjust yield curve control

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• Japanese Yen strengthens (USD/JPY lower) on Nikkei report. 
• The week ahead includes key meetings of the Bank of Japan and the Federal Reserve.
• USD/JPY falls more than 100 basis points on BoJ yield curve rumor.

The Japanese Yen (JPY) strengthed mightily against the US Dollar on Monday after Nikkei Asia reported that the Bank of Japan is prepared to adjust its Yield Curve Control (YCC) framework to allow the yield on the 10-year Japanese government bond to rise above 1%. Anonymous sources told the news organization that central bank officials view it as necessary since the Federal Reserve’s higher interest rate framework was already pushing Japanese government bond yields in that direction.