USD/JPY holds steady below 135.00. As a normalisation of monetary in Japan policy is set to take some time, economists at Commerzbank expect the Yen to struggle against the USD.

Fluent transition seems likely

“The future chair of the BoJ Kazuo Ueda pointed out that inflation was unlikely to remain at high levels for long and that the central bank should continue its expansionary course. Ueda signalled that the transition to a new governor was probably going to be smooth. A sudden change in monetary policy, therefore, does not seem that likely.”

“A renewed appreciation of the JPY against USD should remain difficult for now. The market is likely to remain nervous as speculation that under the current governor Kuroda another adjustment of monetary policy in connection with yield curve control might be made could continue, causing increased volatility in JPY.”