Yen Rises After Japan Kato Comments
(RTTNews) - The Japanese yen strengthened against other major currencies in the Asian session on Tuesday, after Japanese Finance minister Katsunobu Kato reiterated that the government would keep a careful eye in foreign exchange rates and take action to prevent excessive volatility. While speaking at a news conference today, Kato admitted that the conditions supporting Japan's economy had changed dramatically since the "Abenomics" era.
Kato stated that he has observed recent unbalanced and swift fluctuations in the foreign exchange market, and that it is crucial that currencies move steadily and in line with fundamentals.
"We have been seeing rapid moves toward a weaker yen", he said.
Meanwhile, political unpredictability may prevent further JPY increases and postpone the Bank of Japan (BoJ) rate rises.
Reducing concerns about a trade war between the US and China might make the JPY less of a safe haven.
In the Asian trading today, the yen rose to an 8-day high of 175.46 against the euro, from yesterday's closing value of 176.33. The yen may test resistance around the 172.00 region.
Against the pound and the U.S. dollar, the yen advances to an 8-day high of 201.71 and a 4-day high of 151.63 from a recent 4-day lows of 203.52 and 152.61, respectively. If the yen extends its uptrend, it is likely to find resistance around 197.00 against the pound and 148.00 against the greenback.
The yen edged up to 189.01 against the Swiss franc, from Monday's closing value of 189.55. On the downside, 185.00 is seen as the next resistance level for the yen.
Looking ahead, Canada building permits for August, U.S. NFIB business optimism index for September and U.S. Redbook report is slated for release in the New York session.
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