Home Forex Analysis And Forecasts Yen Soars on Kuroda Commentary, Greece News-Flow in Focus Ahead

Yen Soars on Kuroda Commentary, Greece News-Flow in Focus Ahead

Japanese Yen soared after BOJ Governor Kuroda said he doesn’t expect to see the currency fall further. Greece crisis news-flow is in focus ahead.

Talking Points:

  • Japanese Yen Soars as Aussie Dollar Gains on BOJ and RBA Comments

  • Greece News-Flow in Focus as Tsipras Meets Merkel, Hollande for Talks

  • See Economic News Directly on Your Charts with the DailyFX News App

The Japanese Yen outperformed in overnight trade after BOJ Governor Kuroda said it was “hard to see [the currency’s] real effective rate falling further,” adding that it can’t be assumed that the unit will weaken following a Fed interest rate hike. Kuroda likewise repeated that the QQE stimulus effort will continue until inflation is stable at 2 percent, stressing that the program is not on a calendar-based schedule. The Yen added over 1 percent on average against its top counterparts.

The Australian Dollar faced selling pressure, sliding as much as 0.6 percent against the majors, after RBA Governor Stevens said it would “quite some time” before the central bank considered raising interest rates. On the other hand, the central bank chief noted that policymakers are open to further easing if it is deemed beneficial to sustainable growth and once again argued that the Aussie exchange rate needs to fall further.

Looking ahead, Greece-related news flow will be in focus as traders look to a meeting between the country’s Prime Minister Alexis Tsipras with his German and French counterparts (Angela Merkel and Francois Hollande, respectively) for signs of a break-though on a funding deal. Athens delivered an updated set of proposals to the creditor camp and government spokesman Sakellaridis said officials’ priority is a “medium-term solution”. Signs of progress may offer a boost to the Euro.

Critical Levels
CCY Supp 3 Supp 2 Supp 1 Pivot Point Res 1 Res 2 Res 3
EURUSD 1.1017 1.1149 1.1216 1.1281 1.1348 1.1413 1.1545
GBPUSD 1.5082 1.5213 1.5299 1.5344 1.5430 1.5475 1.5606
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