Yen Weakens 1% In NY Trade, Kuroda Replacement To Be Presented Next Tuesday

USD/JPY got to fresh weekly lows of 130.35 post the Asia close, amid a broad USD pull back. However, we recovered smartly from these levels, moving back to 131.50/55 by the NY close. This actually left yen weaker for Thursday's session, down around 0.10% versus the USD and underperforming most of the G10 space.

• The late move higher in US cash Tsy yields weighed on the yen, helping USD/JPY rebound back above the 20-day EMA (around 130.77 currently).
• Elsewhere the focus remains firmly on the new BoJ Governor. Yen dipped briefly in late trade yesterday amid reports of internal opposition, within the government's ruling party, to a potential hawkish replacement for Kuroda (such as previous BoJ Deputy Governor Yamaguchi).
• The government is planning to present its nominee for the new BoJ Governor to parliament on Feb 14 (next Tuesday) according to local media reports.
• 1 week USD/JPY vol is back close to the 15.75% level, showing an upward bias, but we remain well below mid Jan highs near 25%.
• On the data front today, Jan PPI is on tap, with the y/y print expected to ease to 9.7% from 10.2% prior. The m/m outcome is forecast at 0.3%, versus 0.5% prior.