​NKY Capped Upside Structures Spike As BoJ Nears

Macro funds have been rushing to upside structures on the Nikkei 225 as expectations increase that there will be policy action at the Bank of Japan meeting on Thursday to counter the deflationary impact of recent yen strength. Despite policy action likely to be positive for the Nikkei and yen, macro investors have largely been capping or hedging their upside exposure, therefore suggesting that spot will not rebound significantly in the short term.