Investing.com – The U.S. dollar is trading higher against the Japanese yen during Monday’s Asian session ahead of an expected speech by Bank of Japan Governor Haruhiko Kuroda later today in Tokyo.
In Asian trading Monday, USD/JPY is higher by 0.06% at 98.44 after earlier trading as high as 98.72. The pair was likely to find support at 98.10, Friday’s low, and resistance at 99.94, Thursday’s high.
The greenback has surged more than 6% against the yen since the Bank of Japan pledged to double its asset purchase program over the next two years and extend the maturities of the bonds it purchases.
Last week, USD/JPY flirted with 100, though the pair could not break through that psychologically important barrier.
Following the yen’s rapid tumble, Japan is expected to receive reminders from finance ministers of the G20 nations regarding the currency’s depreciation when the group meets later this week. Earlier this year, the G20 prodded Japan to not intentionally drive the yen lower, stopping short of censuring the world’s third-largest economy.
However, the U.S. Treasury said last week Japan must remain focused on domestic economic repair and must "refrain from competitive devaluation and targeting its exchange rate for competitive purposes."
The European Union, Germany in particular, has also been vocal in its criticism of Japan’s weaker yen policy. Export-dependent nations from Brazil to South Korea have also not been shy in their disdain for the suddenly weaker yen.
For his part, Kuroda has moved to assuage Japan’s major trading partners, saying Japan is not looking to purposefully hurt any countries with the weak yen, nor is Japan looking to engage in a currency war.
Elsewhere, EUR/JPY is up 0.06% at 129.08 while AUD/JPY climbed 0.27% to 103.63. NZD/JPY is down 0.22% at 84.31.
In Asian trading Monday, USD/JPY is higher by 0.06% at 98.44 after earlier trading as high as 98.72. The pair was likely to find support at 98.10, Friday’s low, and resistance at 99.94, Thursday’s high.
The greenback has surged more than 6% against the yen since the Bank of Japan pledged to double its asset purchase program over the next two years and extend the maturities of the bonds it purchases.
Last week, USD/JPY flirted with 100, though the pair could not break through that psychologically important barrier.
Following the yen’s rapid tumble, Japan is expected to receive reminders from finance ministers of the G20 nations regarding the currency’s depreciation when the group meets later this week. Earlier this year, the G20 prodded Japan to not intentionally drive the yen lower, stopping short of censuring the world’s third-largest economy.
However, the U.S. Treasury said last week Japan must remain focused on domestic economic repair and must "refrain from competitive devaluation and targeting its exchange rate for competitive purposes."
The European Union, Germany in particular, has also been vocal in its criticism of Japan’s weaker yen policy. Export-dependent nations from Brazil to South Korea have also not been shy in their disdain for the suddenly weaker yen.
For his part, Kuroda has moved to assuage Japan’s major trading partners, saying Japan is not looking to purposefully hurt any countries with the weak yen, nor is Japan looking to engage in a currency war.
Elsewhere, EUR/JPY is up 0.06% at 129.08 while AUD/JPY climbed 0.27% to 103.63. NZD/JPY is down 0.22% at 84.31.