A surprise announcement on Friday saw Japanese Prime Minister Kishida appoint Kazuo Ueda as the new BoJ governor. Ueda is a hawk relative to Mosayoshi Amamiya, the current deputy governor. However, his current leaning will probably have a dovish tilt with monetary policy shifting slowly.
In response, on Friday, the USDJPY pushed down but ended charting a dragonfly doji (blue arrow). I.e., bears lost control at the day's low with bulls pushing price up. There has been bullish follow through today and the RSI is on the bullish side of 50 (green rectangle). Ueda's hearing is on 24 February. The market is likely to be range bound until we hear more of his monetary policy outlook.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.