<p>The market was caught off guard in Tokyo trade on a report that Amamiya had turned down the role as BOJ Governor and that 71-year-old Kazuo Ueda was going to get the job.</p><p>Ueda wasn’t even on the long list of names people were speculating about, he wasn’t even a dark horse.</p><p>The immediate reaction was a hawkish one with USD/JPY tumbling. Since then, the market appears to have concluded that it doesn’t really know much about Ueda. That sentiment was hardened when he <a target=“_blank“ href=“https://www.forexlive.com/centralbank/ueda-says-boj-monetary-policy-is-appropriate-need-to-continue-easy-policy-20230210/“ target=“_blank“ rel=“follow“>said </a>today that BOJ policy is appropriate and that easy policy needs to continue.</p><p>Justin earlier wrote a great post on what he’s <a target=“_blank“ href=“https://www.forexlive.com/news/what-to-know-about-kazuo-ueda-the-man-set-to-take-over-as-the-next-boj-governor-20230210/“ target=“_blank“ rel=“follow“>said </a>in the past. There’s also this:</p><p>“From here on, with the restarting of economic activity post-Covid, there are expectations that there’ll be a stronger demand-inducing effect from the weaker yen. On the other hand, globally there’s likely to be a slowdown of inflation and economic growth. We should view the path toward achieving sustainable 2% inflation in Japan as still a long one.” </p><p>At some point the BOJ will have to exit YCC but naming Ueda as BOJ Governor isn’t a clear cut signal that it’s coming. That’s why USD/JPY has completed the round trip today.</p>

This article was written by Adam Button at www.forexlive.com.