Forex Flash: USD/JPY has scope for downward correction despite BoJ dovish governance – Commerzbank (Barcelona) - The USD/JPY reached the highest level in over two years last night, at 94.77, on reports that the likely candidate to BoJ governance is Haruhiko Kuroda, president of the Asian Development Bank, being assisted by Kikuo Iwata and Hiroshi Nakaso. “Markets are expecting this alleged infernal trio to pursue a particularly aggressive monetary policy”, wrote analyst Carolin Hecht. “As a new hopeful for the nomination as governor seems to emerge every few days we will not speculate about the appointment”, she added, expecting only a very short term effect on USD-JPY moves. “What is much more important is that thanks to its ability to change the central bank legislation the government is going to dominate in the end when it comes to Japanese monetary policy”, Hecht continued, seeing potential for a downward correction in the short term.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.