It was last Monday that FX markets got their first chance to respond to remarks from Bank of Japan Governor Ueda.
ICYMI, summary here:
Governor Ueda's hawkish hints last weekend seem like a long time ago now.
While USD/JPY closed its gap and climbed to highs of the year circa 147.90 on Friday the 10-year Japanese Government Bond yield finished the week at its highest yield since December 2013 around 0.72%.
The yen and JGBs are sending somewhat conflicting signals. The BOJ is meeting this week, do we get clarity from the Bank in its statement on Friday (due around 0230 to 0330 GMT, there is no firmly scheduled time)?
USD/JPY hourly chart showing the gap fill:
