Investing.com - USD/JPY was mixed during morning Asian trade on Monday after a wider that expected December trade deficit in Japan and the release of Bank of Japan December board meeting minutes that said easy monetary policy was aiding the economy.
According to the data released by Japan’s Ministry of Finance, country’s year-on-year trade deficit in December widened to JPY1.302 trillion against expectations of 1.223 trillion. Exports rose by 15.3% year-on-year against expectation of 17.8% and imports rose 24.7% year-on-year against expectations of 26.1%.
At the same time, Bank of Japan board members largely agreed that an aggressive easy policy started in April 2013 has shown a cummulative effect on economic prospects and there is not an imminent need for additional steps, according to minutes from the Dec. 19 to 20 policy-setting meeting released on Monday.
"Members shared the recognition that these continued to firmly take hold, and financial conditions were easing steadily to underpin firms' and households' spending," the minutes said, though one board member expressed concern about a prolonged easy policy.
AUD/USD traded rose 0.09% at 0.8690, USD/JPY traded up 0.05% at 102.39.
Australian markets are closed for a national holiday.
A broad based selloff in financial markets accelerated on Friday as investors sold off stocks and emerging market currencies amid expectations that the Federal Reserve will continue to taper stimulus measures.
Emerging market currencies have been hard hit since the Fed announced plans last month to begin scaling back its asset purchase program, while worries over political instability and the outlook for growth for some countries also weighed.
On Wednesday’s outcome of the Federal Reserve’s monthly meeting will be in focus amid expectations for a reduction to USD65 billion from the current USD75 billion in the bank’s stimulus program.
Euro zone data on inflation and unemployment will also be closely watched.