There is no more obvious way to play interest rate differentials than buying dollar/yen.
One subject he may tackle is that maybe short-term rates need to be that bit higher.
Given that the employment report will be released on Friday, the appetite for selling the dollar may be limited especially with the consensus for non-farm payrolls gradually creeping higher from the original reading of 200,000.
Fukui has said nothing new, he has pretty much repeated what the market already knows and hasn't changed the timing of a shift on quantitative easing.
Given the rhetoric we've seen from the government today, the pressure, beyond moving away from quantitative easing will be very, very much on the BOJ to maintain a zero interest rate structure.
His number one objective will be to stress continuity. Continuity means more interest rate increases, so that means the dollar can keep going up.
I think it's inevitable that Governor Fukui will indicate we're that bit closer to the end of quantitative easing but I still think the message will be one of relative caution.
I think the fact that every time we've gone below 114 yen (on dollar/yen) we've bounced back higher, is beginning to become a bit of a concern for those playing the short-term market by trying to push dollar-yen lower.
Overall sentiment hasn't changed significantly, obviously we've had a reversal and the selling has ceased temporarily... But the strength of the dollar has been relatively modest.
Rising oil and gasoline prices are negative for the dollar.
The data are becoming ever more important. There's no justification in the data to date to warrant the market to push aggressively for 5.25 percent.
There has been a shift this week towards expectations of another U.S. interest rate rise in March -- the interest rate differential is there and it is helping the dollar.
Yield is still very important for Japanese investors and it's nearly a guaranteed event that we'll see a pick up in purchases of foreign assets.
We could argue possibly that we've seen a little bit of stability since we've had the interest rate cut out of the way. Certainly the market is not as convinced over the need for further substantial monetary tightening in the UK.
Towards the end of the year, we do see the dollar turning down as it loses its rate support.
Any shift in policy on Thursday from the BOJ is very likely to be accompanied by a strong commitment to maintaining zero interest rates. There is no trade more obvious than selling the yen against the dollar.
The broader picture for the yen's decline is down to the continued deterioration in Japan's trade surplus.
The yen is being supported by a liquidation of short positions.
A banking crisis is a more realistic view than at any time in the last few years.
A consensus reading is not going to continue to support the dollar.
Following previous moves by the Federal Reserve, the market pretty much immediately looked ahead and had a confident view on the interest-rate outlook for the next two meetings. That's been a supportive factor for the dollar. Now it seems to be different.
The consensus is that we are definitely going to war and it's probably two to three weeks away, no more than that. We can take it as a given that the Bank of Japan is in the market at or around 117, so that the low we have tested in the past at 116.80 remains intact.
The dollar remains underpinned against both the euro and the yen ahead of the key employment report from the US.
The dollar remains in recovery mode after last week's sharp sell-off.
The dollar has depreciated sharply against the euro and more modestly against the yen with dollar sentiment deteriorating as fears increase over the outlook for the US economy.
The market has already come to the conclusion that the medium-term impact of Katrina will be negligible if not net positive, therefore weak figures in the near term won't have any bearing. The market is now looking for a Fed move next week.
The market is now beginning to look beyond the potential first step in terms of a shift from quantitative easing to interest rate targeting.
