USD/JPY hits 11-day low as Japan's Aso calls BOJ's fight against deflation a mistake

The Japanese yen picked up a bid a few minutes before press time, possibly in response to Japanese Finance Minister Aso's comments that BOJ's fight against deflation is a mistake.
The currency pair hit an 11-day low of 111.65 before trimming losses, possibly on dovish comments from a Senior BOJ official.

Omkar Godbole FXStreet Contributor

The bid tone around the Japanese yen strengthened, pushing the USD/JPY pair down by 33 pips to an 11-day low of 111.65 earlier today after Japan's Finance Minister called the Bank of Japan's (BOJ) and the Japanese government's fight against deflation a mistake.

The Finance Minister said both institutions made a mistake by combating falling price pressures during the Heisei period, which started in February 1989 and is set to end on April 30, 2019. Aso added further that Japan has no intention of testing the modern monetary theory, which states that countries which issue their own currency can never "run out of money".

Aso's comments could bolster the already strong speculation that the Japanese central bank has run out of ammo. Further, it indicates growing discomfort among policymakers of having to run a "flood-like" stimulus.

The JPY, therefore, could continue to rise during the day ahead, more so, if the oil rally ends up triggering risk aversion.

As of writing, the USD/JPY pair is trading at 111.77. The minor recovery from session lows could be associated with the latest comments from BOJ officials that the central bank can do more if needed.

Technical Levels

USD/JPY

Overview
Today last price	111.77
Today Daily Change	-0.17
Today Daily Change %	-0.15
Today daily open	111.94

Trends
Daily SMA20	111.47
Daily SMA50	111.21
Daily SMA100	110.78
Daily SMA200	111.51

Levels
Previous Daily High	111.99
Previous Daily Low	111.85
Previous Weekly High	112.17
Previous Weekly Low	111.76
Previous Monthly High	112.14
Previous Monthly Low	109.71
Daily Fibonacci 38.2%	111.94
Daily Fibonacci 61.8%	111.91
Daily Pivot Point S1	111.86
Daily Pivot Point S2	111.79
Daily Pivot Point S3	111.73
Daily Pivot Point R1	112
Daily Pivot Point R2	112.06
Daily Pivot Point R3	112.14

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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