Japan Chief Cabinet secretary, Hirokazu Matsuno said on Monday, he “expects the Bank of Japan (BoJ) to continue with appropriate monetary policy, taking into account economic, prices and the financial situation.

Matsuno said he does not want to comment on the Japanese Government Bond (JGB) yields.

Market reaction

USD/JPY is correcting further away from eight-month troughs of 127.24, trading at 128.63, adding 0.60% on the day. Wednesday’s BoJ policy decision is eagerly awaited.