“On balance yen depreciation helps Japan,” said an official from the International Monetary Fund (IMF), per Reuters, during early Friday morning in Europe.

The IMF official also mentioned that the Ban of Japan’s (BOJ) yield curve control quite effective by adding, “Recent yen moves are in line with medium-term fundamentals.”

It’s worth noting that International Monetary Fund(IMF) Deputy Managing Director Kenji Okamura also said, “Asian economies must be mindful of spillover risks as a decade of unconventional easing policies by major central banks is withdrawn faster than expected.”

FX implications

USD/JPY retreats from intraday high following the news, recently down to 127.80, amid mixed clues and sluggish markets.

Read: USD/JPY approaches 128.00 on robust Japan’s National Inflation at 2.5%