The USD/JPY pair is trading to the upside on Monday morning; investors are responding to the speech of the BoJ’s governor.
On Monday, the Japanese Yen is weakening against the USD. The current quote for the instrument is 114.33.
Haruhiko Kuroda, the current Governor of the Bank of Japan, delivered a speech today when he opened a meeting with business leaders. He said that the inflation target remained the same, 2%, and the regulator was going to continue the QE program. The country’s economy is slowly growing and, according to the bank of Japan, the situation would improve thanks to external and internal demand.
Among quite unusual things said by Kuroda was a possibility to manage currency exchange rates. According to his words, the inflation target of 2% may mainstream the issue of exchange rates long-term stability. Kuroda’s words can mean everything, from controlling the Yen “manually” to introducing additional fiscal measures. According to the BoJ’s estimations, the currency market fluctuations should be reasonable and based on, first of all, the economy.
These comments might have decreased the interest in Yen for now. However, the fortune and market conditions haven’t been in favor of the Yen for a long time, because the demand for the Japanese currency as a “safe haven” asset is very low.
RoboForex Analytical Department