Update 1425ET: After BoJ Govenor Kuroda's remarked were apparently misinterpreted as "optimistic" and therefore hawkish - sending USDJPY notably lower, The Bank of Japan has clarified his comments stating that he did not in fact change the inflation outlook... and USDJPY is spiking... And while gold did not react on the USDJPY downside, it is now that USDJPY is spiking!? What a week for FX roulette players!! * * * USDJPY tumbled back below 109.00 as market participants interpreted BoJ Governor Kuroda's comments at a panel in Davos as relatively optimistic (and thus hawkish for one of the world's most dovish central bankers). Bank of Japan Governor Haruhiko Kuroda says a 15-year period of deflationary mindset is not easy to eradicate from consumers but sounded an optimistic note. Kuroda said Japanese growth is moderate, but well-balanced, but noted that wages and prices are picking up, and that the BoJ is "finally close" to its 2% inflation target. Bloomberg notes that Kuroda sees some risks to Japanese outlook - mostly external and geopolitical - and reassured that BOJ will continue to support the economy. The reaction was a swift bid for JPY, sending USDJPY back below 109.00 For now stocks are shrugging it off... Gold is recovering in its mirror-like manner as USDJPY slides.