Yen remains vulnerable after Kuroda’s clarification on prior comments
The Japanese yen remained weak against major currencies on Wednesday after BOJ governor said on Tuesday he did not intend by his last week comments on the yen to influence the currency’s exchange rate.
Kuroda said in parliament on Tuesday in Tokyo he did not intend to weigh on the yen’s exchange rate with his dovish comments last week.
He also denied saying that the yen’s depreciation is needed to help reach the BOJ’s inflation target.
The dollar strengthened against the yen to hit a high of 123.96 ahead of the Fed’s policy stamen later in the day.
It is worthwhile to mention that the yen advanced last week to hit its highest this year after Kuroda said the yen’s real effective rate is unlikely to fall further. The USDJPY fell from peak of 125.66 the previous week to close at 123.40.
Policymakers at the BOJ may discuss the disadvantages of the having a week yen during their policy meeting on Friday.
The BOJ is predicted to maintain its upbeat outlook for the Japanese economy and its huge stimulus program.
The 4-hour chart shows that the upside correction resumes with the help of the key support line depicted on the chart.
The Parabolic SAR supports the upside direction as it still provide positive signal, while the RSI 14 hovers above the 50-center line.