The Nikkei carried the report that a current Bank of Japan Deputy governor Masayoshi Amamiya has been sounded out by the Japanese government to replace BOJ Governor Kuroda when Kuroda’s term expires on April 8.
Amamiya and Kuroda share very, very similar views on BOJ policy and the importance that it be maintained. USD/JPY rose on the headlines early in very thin Monday trade:
We’ve since heard from Japan’s finance minister Suzuki, who says he is out of the loop on this issue, (which seems a bit weird given his the fin min):
Japan’s Jiji press has asked Amamiya about the reports but he did not comment.
USD/JPY has been all over the shop, as you’d expect on such headlines in early trade. It gapped higher as yen longs had stops triggered, the views of Amamiya and Kuroda are close enough to provide a headwind to yen, and then began to cover the gap with a pullback exacerbated by Suzuki’s denial of any knowledge of the matter,