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Forex - USD/JPY higher following CSPI report, Kuroda comments

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Investing.com - The U.S. dollar is trading higher against the Japanese yen in Asia on Tuesday, helped by some supportive comments from the new BoJ governor and a solid data report.

In Asian trading Tuesday, USD/JPY is higher by 0.22% at 94.37 after earlier trading as high as 94.96. The pair was likely to find support at 0.9418, Friday's low and resistance at 96.10, Thursday's high.

On Monday, BoJ Governor Haruhiko Kuroda addressed parliament regarding monetary policy, telling lawmakers that the weaker yen has helped improve Japanese consumer sentiment. However, Kuroda added that uncertainties linger for Japan's economy, the world's third-largest.

Earlier this month, Kuroda told Japanese policymakers that the country's current asset-buying program is not enough to help Japan reach a rate of 2% inflation. While Kuroda has been verbally committed to raising inflation and weakening the yen, some market participants believe it will take more than just added quantitative easing to truly awaken the long-slumbering Japanese economy.

Earlier today, BoJ said Japan's corporate services price index rose more-than-expected in February. Japan's CSPI rose at a seasonally adjusted rate of 0.1% last month compared with a reading of -0.2% in January. Analysts expected no change in the CSPI in February.

Elsewhere, the Bank of Korea said South Korea had fourth-quarter GDP growth of 1.5%, an increase of just 0.3% from the third quarter, indicating Japan's weaker yen is weighing on South Korea. South Korean officials have not been shy about voicing concern about the weaker yen.

In the past six months, the yen has plunged 18% against the South Korean won, worse than the Japanese currency's loss against many developed market currencies. South Korean exporters compete directly with Japanese auto and electronics makers.

Meanwhile, EUR/JPY rose 0.30% to 121.42 while AUD/JPY is up 0.08% at 98.64. NZD/JPY is higher by 0.09% at 78.72.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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