The USD/JPY pair is trading down on Wednesday, but in a global sense, the instrument remains stuck in a narrow range.
On Wednesday afternoon, the Japanese Yen is trading with a serious strengthening in tandem with the US dollar. The current quote in the USD/JPY pair is 123.10. Activity in the currency section today is small.
Governor of the Bank of Japan Mr. Kuroda said today that the base price trend in the country is improving. According to him, inflation in Japan will reach the target value of 2% when commodity risks leave the field of view of investors and economies. As soon as the risk premium in the market will dry up, inflation parameters will align fairly quickly.
Kuroda appreciated that Japan is now about halfway to the desired inflation target. Ultra-soft monetary policy will be carried out, so long as the target for the consumer price index will not be achieved.
It seems that for some time after reaching the 2% CPI the Bank of Japan would have to maintain a soft monetary policy in force. The hardest part of this process, is perhaps not achieving the result, but its retention and stabilization near the desired levels. It is possible that this area of work requires a special financial and fiscal effort.
RoboForex Analytical Department
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