FXWire Pro Headline | February 6 2013 5:08 EST
Quotes from Standard Chartered:
-To a significant extent, the slide in the JPY is premised on market expectations of the appointment of a super-dovish replacement to Shirakawa as governor of the BoJ. However, it should be remembered that the nomination of BoJ board positions has to be approved by both parliamentary houses.
-While the LDP-led government has a two-thirds majority in the Lower House, it is in a minority in the Upper House. As such, two key risks to JPY weakness are (1) the approval process in the Upper House of the new BoJ governor is not smooth and (2) he is not as dovish as hoped for.