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21 Feb 2013
Forex: Yen retains weaker tone on BoJ candidates headline
The sensitivity of the Japanese Yen towards headlines relating to prospects of BoJ candidates remains at very high levels. The latest fresh info out of Tokyo-based Mainichi newspaper is that Japan's dovish policymaker Mr. Iwata, together with Asia's Development Bank Chief Mr. Kuroda, are the leading candidates to be appointed BOJ head.
The news add weigh to what has been talked in the past 24 hours, with Yomiuri press first breaking a story in which it was suggested that BoJ candidate Mr. Muto (the least dovish) may be discarded as a potential BOJ candidate.
As reported yesterday, with Muto out and Kuroda still half way through his term as chief of the ADB, market may be starting to discount with more conviction heightened risks of a BoJ presided by Mr. Iwata, the most dovish candidate, it appears.
USD/JPY is making pushes north in early Tokyo, with the move coming in sync with the latest Yen-negative headlines. FXWW Founder Sean Lee notes, tips to play a .9200/.9450 range whilst the crosses are adjusting.
Sean adds: "Some of the Yen crosses, particularly GBP/JPY, are starting to play catch-up looking at other currencies to sell. EUR/JPY is still in consolidating but I’m expecting the lower end of the pennant around 122.00 to be tested first."
The news add weigh to what has been talked in the past 24 hours, with Yomiuri press first breaking a story in which it was suggested that BoJ candidate Mr. Muto (the least dovish) may be discarded as a potential BOJ candidate.
As reported yesterday, with Muto out and Kuroda still half way through his term as chief of the ADB, market may be starting to discount with more conviction heightened risks of a BoJ presided by Mr. Iwata, the most dovish candidate, it appears.
USD/JPY is making pushes north in early Tokyo, with the move coming in sync with the latest Yen-negative headlines. FXWW Founder Sean Lee notes, tips to play a .9200/.9450 range whilst the crosses are adjusting.
Sean adds: "Some of the Yen crosses, particularly GBP/JPY, are starting to play catch-up looking at other currencies to sell. EUR/JPY is still in consolidating but I’m expecting the lower end of the pennant around 122.00 to be tested first."