USD/JPY: Nomination of BoJ Governor to upset the Yen exchange rates quite heavily – Commerzbank

USD/JPY briefly broke out to the downside early Thursday as investors anxiously await nominations for the next Bank of Japan Governor.

There is only one subject for the Yen at the moment

“Moves in USD/JPY underlines the nervousness regarding the obviously imminent nomination of a successor for the departing governor of the BoJ Haruhiko Kuroda. This was caused by reports of possible disagreements amongst members of the governing party should the hawk Hirohide Yamaguchi be elected.”

“Prime Minister Fumio Kishida underlined yesterday that he was aware of the significance of communicating the nomination of a successor to the market. Today’s reaction illustrates that he can only loose.” 

“The nomination, which is expected to take place next week, is likely to upset the Yen exchange rates quite heavily, regardless of which candidate will emerge as the favourite.”