Underperforms, BoJ Dec Meeting Minutes On Tap Today

Yen underperformed through Friday's session, dropping 0.90% against the USD, the worst performer within the G10 basket. We closed at the 129.60 level, and sit slightly softer in early trade today, around 129.45/50. We got as high as 130.60 in NY trade on Friday, with risk appetite firming in the equity space as the session progressed and driving yen weakness against AUD and NZD.

• NZD/JPY got close to 84.00 through Friday (+1.7%) but now sits slightly lower at 83.70/75.
• For USD/JPY, the descending 20-day EMA comes in close to 131.00, with this resistance level presenting a cap for the pair since early November last year.
• On the data front today, it is just BoJ minutes from the Dec 19-20 meeting. Given the shift in YCC parameters announced at the meeting, it could be a focus point, although has already been superseded by the January policy meeting from last week.
• Over the weekend, Japan PM Kishida stated it was too early to discuss revising the inflation accord between the government and BoJ, which was set in 2013. The PM also stated that the new BoJ Governor will be announced in February for parliamentary approval.