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Forex - USD/JPY rises ahead of Kuroda testimony

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Investing.com - The Japanese yen is trading lower against the U.S. dollar in Monday's Asian session ahead of testimony from Bank of Japan Governor Haruhiko Kuroda.

In Asian trading Monday, USD/JPY climbed 0.36% to 94.83. The pair was likely to find support at 94.20, Friday's low, and resistance at 96.14, Wednesday's high.

Kuroda, who last week assuaged traders by reiterating he will do everything in his power to ensure Japan's desired rate of 2% inflation will be met, is scheduled to testify before parliament later today. Given the yen's weakness over the past few months, it appears obvious that traders are betting that newly installed Kuroda will make good on his promises to use bold initiatives to stimulate the Japanese economy while weakening the yen.

Kuroda was approved as the new BoJ leader earlier this month and many traders are speculating that when he oversees his meeting of the central bank in the leadership seat in early April that new easing measures will be announced.

As it is, the yen is down 18% in the past six months, making it the worst-performing developed market currency over that time.

USD/JPY could be in focus this week as the U.S. is expected to release data points ranging from durable goods orders to consumer confidence as well as the final reading of fourth-quarter GDP. On Thursday, Japan publishes retail sales data and on Friday the country will reveal data on inflation, household spending and industrial production.

Elsewhere, South Korea's newly appointed finance minister, Hyun Oh Seok, appealed to the G-20 to revisit the issue of the weaker yen. South Korean exporters, which are in direct competition with those in Japan, can be vulnerable to a weaker yen.

Meanwhile, EUR/JPY rose 0.60% to 123.50 while AUD/JPY advanced 0.35% to 99.07. NZD/JPY is up 0.22% at 79.12.

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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.


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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