USD/JPY hits 8-day highs above 110.90 despite Japan's Aso ruling out extra stimulus measures

USD/JPY rose to an 8-day high of 110.93 a few minutes before press time despite Japan's Aso playing down the need for more stimulus. 

The Finance Minister was out on the wires earlier today stating that the government is not considering extra measures as the economy is not particularly bad at the moment. Aso added further that the global economy is recovering moderately, but cited trade issues and China's slowing economy as risks to the Japanese economy. 

Aso's stance on economy and stimulus contradicts widespread belief that Abe may announce extra measures ahead to lift growth ahead of local and Upper House elections. 

Even so, JPY is on the defensive, possibly due to signs of risk reset in the financial markets. The S&P 500 rose 0.36 percent yesterday and the futures are currently reporting a 0.13 percent rise. The stocks had come under pressure earlier this week on heightened US recession fears. 

Also, the data released earlier today showed Japan's labor market tightened in February with the jobless rate falling to 2.3 percent but in a non-inflationary manner, as indicated by Tokyo's March core CPI, which rose just 0.7 percent year-on-year. 

Looking ahead, the pair may climb 111.00 if the equities post strong gains, lifting the oversold US 10-year treasury yield higher. 

Technical Levels