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On Friday the Japanese government announced...>

JAPAN
JAPAN: On Friday the Japanese government announced that they would reappoint
Haruhiko Kuroda as Bank of Japan Governor for a second term according to reports
in Kyodo, Kurodas current term was due to end in April. The announcement should
serve to assuage some trepidation in markets, confirming a steady hand on the
tiller of the current easy policy. 
- Recent comments from Kuroda have served to reiterate that he intends to
continue persistent and powerful easing until the 2% inflation target is hit.
Despite this, comments from Kuroda at Davos, as well as "reversal rate"/adverse
effects of easing rhetoric have caused some BoJ watchers to doubt committment to
the easing process. 
- Japanese markets are closed today for Foundation Day, but the news could
filter through to some yen weakness, the market is still heavily skewed to
shorts in yen - despite recent strength on bouts of market volatility - which
could exacerbate any moves. USD/JPY last down 20 pips at 108.59 based on USD
weakness.

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