USD/JPY taking a hit.
Japan think tank head Okina, considered among candidates to join new BOJ leadership. He's a candidate to become a Deputy Governor.
- Says BOJ's monetary policy must be revamped
- By making BOJ 's 2% inflation target a long-term goal, monetary policy can become more flexible
- There must be more debate on risks, cost, that might arise when BOJ normalises monetary policy
USD/JPY is subject to this sort of headline risk and will likely remain this way for the months ahead. When a senior Japanese official/leadership contender floats policy change/revamp it's a tailwind for the yen.
