USDJPY surrounded by the uncertainty – Danske Bank

On Friday, Japanese medias (Kyodo News and Nikkei Newspaper) reported that Prime minister Shinzo Abe plans to nominate Koruda for another term as Bank of Japan Governor and analyst, Aila Mihr at Danske Bank, expects the parliament to vote on the BoJ leadership before the end of February.

Key Quotes

“While it is widely anticipated by the market that Koruda would get another term as governor, clarification about the future BoJ leadership would reduce uncertainty and to some extend underpin USD/JPY in the current volatile and less risk friendly markets. However, in the short term, USD/JPY remains caught between the sell-offs in the US fixed income and global equities, and we expect the cross trade within the range of 108.00-110.84 in the near term. We target USD/JPY at 113 in 3M supported by Fed-BoJ divergence.”