USD/JPY jumps on Kuroda comments

FXStreet (Mumbai) - The USD/JPY pair jumped to an intraday high of 123.79 after the Bank of Japan governor Kuroda clarified that he is not in opposition to the idea of further weakness in the Yen nominal exchange rate.

Rejected at 123.80

Following Kuroda’s comments, the pair jumped from 123.32 to 123.80, which was followed a minor sell-off to 123.60 levels. The Japanese yen had gained across the board last week after Kuroda expressed a low possibility of further weakness in the Yen’s REER.

However, the governor made his stance clear today by stating that he never meant to predict the Yen outlook, nor is he against further weakness in the Yen nominal exchange rate. For the time being, the sell-off in the Yen appears to have halted as the pair has consolidated around 123.60 levels.

USD/JPY Technical Levels

The immediate resistance is seen in the range of 123.74-123.80, above which the pair could target 124.02 (10-DMA). On the flip side, a break below 123.00 could see the pair target 122.44.

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