Bank of Japan Governor Kazuo Ueda addressed parliament in the early hours of Tuesday CET.
“Although there’s weakness in some household spending data, my view is that the gradual recovery continues,” said Ueda, quoted in Bloomberg.
Also read
"The USDJPY exchange rate has risen as BOJ Governor Ueda addressed parliament"The USDJPY exchange rate has risen as BOJ Governor Ueda addressed parliament," says financial analyst Andreas Steno, explaining: "The increase is probably due to algorithmic trading reacting to his rather dovish remarks regarding a decline in non-durable goods consumption."
According to Steno, Ueda's parliamentary speech was careful not to provoke concern among politicians regarding policy tightening.
"It appears that the Bank of Japan is anticipating a significant wage increase announcement from the Rengo labor union this week, which would complete the requirements for ending the negative interest rate policy."
Also read
Ultimately, Steno says: "The USDJPY has also not managed to fall significantly below the 146.50 mark this week, setting the stage for dollar short covering, even as the primary downward trend continues and real rate differentials suggest further strength in the Yen."