The Japanese government named Kazuo Ueda to become the next governor of the Bank of Japan (BoJ). Economists at ING expect JPY volatility to remain elevated.

No indications that Uead will favour an abrupt end to BoJ’s ultra-dovish policy stance

“The Yen continues to see elevated volatility as markets struggle to assess the implications of the Bank of Japan appointing – now officially – Kazuo Ueda as next governor.” 

“We expect JPY volatility to stay high as Ueda may refrain from offering clear direction on any policy shift before taking the role in April.”

“For now, there are no indications he will favour an abrupt end to the BoJ’s ultra-dovish policy stance.”