The Japanese yen extended its rally against the other major currencies in European morning deals on Tuesday, after the Bank of Japan governor Haruhiko Kuroda gave an optimistic assessment on the Japanese economy, noting that its QQE is showing its intended effect and the longer-term inflation trend is rising.
In his press conference, Kuroda said he expects inflation to reach around its 2 percent target in the first-half of fiscal 2016. The time of reaching inflation target largely depends on the movement of oil prices, he added.
The global economy is continuing to recover moderately, and its positive effect is expected to spread and help emerging economies emerge from slowdown, he added.
The yen advanced to a 4-day high of 123.33 against the franc, weekly highs of 119.55 against the greenback and 90.12 against the loonie, from its early lows of 124.59, 120.65 and 91.04, respectively.
The yen climbed to 5-day highs of 135.08 against the euro, 184.24 against the pound and 75.33 against the kiwi, coming off from its prior lows of 136.41, 186.10 and 76.40, respectively.
The yen was trading higher at 84.95 against the aussie, recovering from its early 2-week low of 86.33.
The yen is likely to find resistance around 122.00 against the franc, 118.00 against the greenback, 134.00 against the euro, 182.00 against the pound, 84.00 against the aussie, 88.00 against the loonie and 74.00 against the kiwi.
The material has been provided by InstaForex Company – www.instaforex.com