ICYMI,
Yen found strength in the very early hours of Asia on the back of a weekend report canvassing changes to the BOJ 2% inflation target once Bank of Japan Governor Kuroda leaves his role in April in 2023:
- Monday morning forex open early indications - 19 December 2022 (BOJ chatter boosting yen)
- Weekend report on BOJ's 2% inflation target: "more flexible" (ps. not until April 2023)
As more markets open in Japan the same sort of gap we had in the yen is being seen in JGBs and stocks
As expected, USD/JPY closed its gap:
