BoJ Must Set A 2.0% Inflation Target, Indicates Shinzo Abe

BoJ Must Set A 2.0% Inflation Target, Indicates Shinzo Abe

For the 24 hours to 23:00 GMT on Friday, the USD weakened 89.19% against the JPY and closed at 89.18. In economic news, the Eco Watchers’ current index in Japan rose to a reading of 45.8 in December, compared to a reading of 40.0 registered in the previous month. Additionally, the outlook index rose to a reading of 51.0 in December, from a reading of 41.9 in the previous month.

In the Asian session, at GMT0400, the pair is trading at 89.57, with the USD trading 0.43% higher from Friday’s close. Over the weekend, the Japanese Prime Minister, Shinzo Abe stressed the need for forceful monetary stimulus and urged the Bank of Japan to set a medium-term inflation target. He stated that the Bank of Japan (BoJ) must set a 2.0% inflation target and make it a medium-term, not long-term goal to show markets that they were determined to pursue bold monetary easing to end nearly two decades of deflation.

The pair is expected to find support at 88.98, and a fall through could take it to the next support level of 88.40. The pair is expected to find its first resistance at 89.91, and a rise through could take it to the next resistance level of 90.26.