<p style=““ class=“text-align-justify“>ING notes that:</p><p style=““ class=“text-align-justify“>“The Bank of Japan is now garnering much more focus than it has in years. Most pressing is the replacement of Governor Haruhiko Kuroda, who leaves in April. A successor will be presented to parliament on 10 February. The favourite, Deputy Governor Masayoshi Amamiya, is seen as the dovish continuity candidate.” </p><p style=““ class=“text-align-justify“>“Any surprise choice of the more hawkish Hiroshi Nakaso could probably send the Yen a lot stronger, with pressure building for 10-year JGB yields to burst above their current 0.50% ceiling.” </p><p style=““ class=“text-align-justify“>“USD/JPY has mainly been driven by the weaker dollar story, but 120 looks like the target this year, helped by the BOJ and lower energy prices.”</p><p style=““ class=“text-align-justify“>Well, it’s a trade that I would say that timing is also somewhat important as rate differentials are still very much in favour of the dollar at the moment (them swaps can be painful).</p>

This article was written by Justin Low at www.forexlive.com.