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Forex - USD/JPY lower despite Kuroda comments

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Investing.com - The Japanese yen is trading higher against the U.S. dollar in Tuesday's Asian session despite comments from Asian Development Bank President Haruhiko Kuroda that traders would normally expect to drive the yen lower.

In Asian trading Tuesday, USD/JPY is off 0.10% at 93.36. The pair was likely to find support at 92.44, the low of March 1 and resistance at 94.30, the high of February 25.

In comments before Japan's parliament, Kuroda, Prime Minister Shinzo Abe's nominee to be the next Bank of Japan governor, said that if confirmed as BoJ leader, he would do everything in his power to reverse years of Japanese deflation.

Earlier this year, amid intense pressure from Abe, BoJ raised its inflation target to 2%. For his part, Kuroda has long been a critic of the central bank, saying the outgoing regime has not done enough to stoke inflation and weaken the yen.

Kuroda, 68, was selected by Abe in large part because he sees in the ADB chief a possible BoJ governor that will tow the party line when it comes to inflation and engage in aggressive monetary easing to weaken the yen.

Earlier this year, BoJ committed to Federal Reserve-style asset-buying programs, but the central bank disappointed markets by saying it would not start those efforts until 2014. Following Abe's nomination of Kuroda, speculation has grown that if appointed, Kuroda could announce new monetary easing efforts as soon as the completion of the first BoJ meeting he leads. That would be in early April.

Meanwhile, in a report released earlier today, the Japanese Ministry of Health, Labor and Welfare said that Japan's Average Cash Earnings rose 0.7% in the fourth quarter compared with a decline of 1.7% in the third quarter. Analysts expected a fourth-quarter reading of -0.3%.

Elsewhere, EUR/JPY fell 0.07% to 121.69 while GBP/JPY fell 0.05% to 141.19. AUD/JPY fell 0.05% to 95.24.

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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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