David Fuller's view Early this morning, the yen weakened on confirmation of rumours that Prime Minister Shinzo Abe would nominate Haruhiko Kuroda, a staunch opponent of deflation, as his choice to lead the BoJ. By this evening the move had been more than reversed, including dramatic upside key day reversals against the four currencies shown on daily charts: JPY/USD, JPY/EUR, JPY/CNY and JPYAUD. This represents massive short covering by the crowd who were short yen and almost certainly long Japanese equities. Consequently, we can expect a sharp sell-off in Japanese stocks on Tuesday, and probably some further short covering in the yen.