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{quote} I don’t know enough about the relationship of bonds to currency, but with this purchase, or potential purchase, will that add strength to the yen? At least in the short term?
This will cap the bond yield, maybe even push it down, cause BoJ buys bonds -> bond supply down -> bond price up -> bond yield down, which in turn may have a negative effect on the currency. By buying bonds, they are also supplying the market with more cash, i.e. increasing the money supply, which also negatively affects the currency. In textbook economics, bond yield supports the currency (positive correlation), relative to another country’s currency, due to the increased attractiveness cause of the higher potential return. But these are just theoretical. Exchange rate movements are so much more complex than this.