Yen retreats despite hawkish comments from Kuroda
The BOJ’s quantitative and qualitative easing program is having positive impact on the economy, yet he noted that the bank is ready to do more easing if necessary.
Japan’s inflation expectations have showed progress, where it is expected to hit the BOJ’s 2 percent target by the first half of fiscal 2016, Kuroda said.
“The deadline we set and our clear commitment to do whatever is necessary (to achieve the target) has significantly changed inflation expectations of companies and households,” Kuroda said.
Kuroda has attributed the delay in reaching the inflation target to the drop in oil prices, and therefore he believes there is no need for additional monetary easing at this stage.
As of 12:17 GMT the USDJPY climbed to trade around 1119.84, compared to the session’s opening at 119.13.
However, the yen has been range bounded versus the U.S. dollar as the pair has been trading between a low of 118.30 and a high of 122 since early March.
For the sideway direction to end, a breakout at either direction is needed, noting that investors remain uncertain about the Fed’s interest rate hike timing and the BOJ’s ability to have steady inflation path.
Against the euro, the yen slipped for fourth straight session to hover around 136.17, while it resumed its downside direction versus the sterling to trade around 188.44.