Monday morning forex open early indications - 19 December 2022 (BOJ chatter boosting yen)

Good morning, afternoon or evening to all ForexLive traders and welcome to the start of the new FX week!

On a Monday morning, market liquidity is very thin until it improves as more Asian centres come online.

As usual for an early Asia Monday morning, prices are liable to swing around on not too much at all, so take care out there.

Levels guide:

Yen is a mover. A bit of a knee jerk to this from the weekend:

• Japan's government is set to revise a decade-old joint statement with the Bank of Japan (BOJ) that commits the central bank to achieve its 2% inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term "at the earliest date possible," Kyodo news agency reported on Saturday, citing government sources.

But, do note, this is NOT going to be happening any time soon (from the same piece):

• Kishida will discuss details on how to revise the statement with a new BOJ governor, who will succeed incumbent Haruhiko Kuroda when his term ends in April, according to Kyodo.

I suspect that knee jerk move is set for a gap fill move during the morning.

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ps. The Wall Street Journal (gated) has a report on Japan and BOJ policy also:

• The country now finds itself in a dilemma. Inflation is rising, the yen plummeting, and some economists and corporate executives blame the negative rate policy for eroded competitiveness and undisciplined government spending. All that has put pressure on the Bank of Japan to finally raise rates.

The Bank of Japan are meeting today and Tuesday. No change to policy is expected.