Incoming Bank of Japan Governor Ueda likely poured cold water on any hope for a hawkish twist to the central bank.
He echoed recent comments that the BOJ’s current monetary easing is appropriate and blamed commodity prices and wages for rising prices, adding that the Japanese CB responds to demand-driven inflation.
Despite these comments, USD/JPY didn’t rally as what might have been expected. However, the pair is currently holding support at the 134 handle, which bulls may see as an encouraging sign. Friday’s US PCE Price Index will undoubtedly also have a say in direction, but can USD/JPY break to a new high?
Check out this market commentary for a deeper insight into this pair: