BREAKING: JPY weakens after Kuroda's comments!

Today the head of BOJ Kuroda announced that the central bank must continue aggressive easing, even if it leads to a further weakening of the yen. Kuroda also stated that the state economy is not in danger of overheating.

Here are some key comments from Kuroda:

• Japan's inflation may hover around 2% for the time being, but the BOJ should maintain the current aggressive monetary easing in order to reach its price target in a stable manner.
• Service price increases have been limited, which shows that inflation in Japan is not as common as it is in the United States.
• BOJ monetary policy should provide accommodative financial conditions, supporting the achievement of full economic recovery
• Japan's economy appears to be more resilient to rising commodity prices than it was in 2008.
• As the impact of covid-19 wears off, there is still plenty of room for cumulative demand to emerge.
• Japanese inflation is likely to pick up in the short term, but that increase will be mainly cost-driven, and it will not last long.

USDJPY pair strengthened sharply after Haruhiko Kuroda's comments. Source: xStation5