Intra-Day Market Moving New and Views USD/JPY

Intra-Day Market Moving New and Views

USD/JPY - ..... Despite dlr's initial fall to 106.04 shortly after Tokyo open, comments from BoJ Deputy Governor Iwata triggered broad-based selling in yen and price later penetrated yesterday's fresh 6-year peak at 104.47 to a high of 106.56 ahead of European open.

Fresh bids are building up in 106.30-10 region with mixture of bids and stops located around 106.00.
On the upside, offers are noted at 106.60/65 with some stops touted above there.

Earlier, BoJ Deputy Governor Iwata said:
'positive effect of weak yen on exports is smaller now than in late 2000's; Japan firms likely to overcome rising import costs from weak yen;
weak yen may raise prices temporarily, but that alone can't lift inflation in long-term perspective;
Japan on track to meet BoJ's price target;
weak yen may push up import costs but may lead to fall in other prices, so must look at its effect comprehensively in guiding monetary policy;
don't see any problem with BoJ buying govt debt with negative yield, even if that is what happened yesterday;
don't forsee any difficulties in boj's market operations even if BoJ has bought govt debt with negative yields;
can't comment on market speculation BoJ may ease further, we will look at upside and downside risks through various data;
too early to say consumer sentiment has cooled, want to watch trend with a longer-term perspective.'