Substantial currency movements based on the words of central bankers seem to be in vogue this afternoon.
The Australian dollar plungede following a speech delivered by RBA governor Glenn Stevens and now the Japanese yen is soaring after supportive comments from Bank of Japan governor Haruhiko Kuroda.
Addressing a government committee, Kuroda suggested “the yen was not likely to weaken much further on a real effective exchange rate basis,” according to a report from Reuters.
He also noted that the excessive rise seen during the global financial crisis has been corrected in recent years.
His words have certainly had an impact. Against the US dollar the yen is currently up over 1% at 123.04. Earlier in the session the pair had been trading as high as 124.62.
USDJPY 5-minute chart