More on the chatter that Amamiya may be the next BOJ Governor - he refused to comment

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 BOJ The Bank of Japan (BOJ) is the central bank of Japan. It was established in 1882 and is headquartered in Tokyo.The BOJ's main responsibilities include issuing and managing the country's currency, implementing monetary policy, and ensuring the stability of the financial system. It also acts as a lender of last resort to banks during times of financial crisis. The BOJ sets the interest rate of the country and sets an inflation target, aiming to achieve 2% inflation.The BoO has a long history, with The Bank of Japan (BOJ) is the central bank of Japan. It was established in 1882 and is headquartered in Tokyo.The BOJ's main responsibilities include issuing and managing the country's currency, implementing monetary policy, and ensuring the stability of the financial system. It also acts as a lender of last resort to banks during times of financial crisis. The BOJ sets the interest rate of the country and sets an inflation target, aiming to achieve 2% inflation.The BoO has a long history, with Read this Term 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:

• USD/JPY above 132 in early Monday Asia trade, 06 February 2023 - chart

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 finance minister Suzuki says he hasn't heard anything on BOJ Gov nominations yet

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,