USD/JPY Rises During Early Asian Trading Hours

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USD/JPY Rises During Early Asian Trading Hours

USD/JPY Rises During Early Asian Trading Hours

After the release of BOJ meeting minutes, the Asian stock goes up to its three-week high.

ForexMinute.com – Minutes after the release of BOJ meeting minutes held on January 21-22, USD/JPY reached to 102.30 – its three-week high. The pair also came out of the 20 pip range. The released minutes extended the confidence about the possible and moderate recovery of Japan’s economy.

The USD/JPY pair has risen to 102.480 at this time of writing, showing a 0.20% growth.
A stable economy was expected since April 2013, the time in which BOJ indicated that it will hopefully boost inflation by 2% within two years. The bank has injected huge cash into the Japan’s financial markets, and also have purchased the Japanese government bonds.

As per the reports suggest, many members expressed the necessity of providing a clear clarification about BOJ having no strict time limit on the current monetary easing degree. “BOJ should provide a clear explanation that it did not strictly set this to end in two years”, the minutes said.

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However some members supported the fact that price stability must be achieved before the announced time, if possible, despite of the prospect of about two years. Eventually, the board decided to keep its policy steady for now by maintaining its monetary easing plans.

The BOJ minutes further emphasized over the condition of emerging economies amid the weaker job data in the US. The bank although kept its hope saved for the US economy to grow.

“With regards to the emerging and commodity-exporting economies, many members said that the developments in these economies, some of which we’re facing structural problems such as current account deficits, continued to warrant attention together with developments in the global financial markets”, the minutes said.

Japan has been facing a trade deficit of JPY2.79 trillion that might lead to an economic mishap. Amid the Japan’s government reflationary policies, yen has been weakened already by about 20 percent.

In other reports, AUD/USD raised 0.05% to 0.9015, while NZD/USD rose 0.11% at 0.8310.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com