Despite numerous headwinds facing the economy, Bank of Japan policymakers sounded a more upbeat tone during their latest decision as exports experience a pickup alongside improving medium-term inflation expectations. Besides the trade perspective, the improvement also reflects better demand domestically as businesses and households increase their investment and spending. Inflation is still a sticky subject, with the impact of weaker energy prices still keeping a lid on the figure even though the Central Bank is forecasting a gradual increase towards 2.00%. Nevertheless, multiple risk factors were mentioned, namely the path of US monetary policy, the UK “leave” decision, problematic European debt, and other geopolitical risks. After a moderate pullback following the weekly reopening, GBPJPY is back on the rise, halving the previous session’s losses.