Comments from Kazuo Ueda who was speaking in the Lower House of Parliament have failed to provide hawkish trigger for fresh gains. Economists at MUFG Bank note that the Yen is vulnerable to further correction lower.

No clear hawkish signal to fuel a renewed pick-up in speculative demand for JPY 

“The comments appear broadly in line with the BoJ’s current policy communication although at the margin they may disappoint those who are looking for a bigger/more imminent further shift in BoJ policy settings under his leadership.”

“There was no clear hawkish signal to fuel a renewed pick-up in speculative demand for the Yen in the near-term. It leaves the Yen vulnerable to further a correction lower while yields outside of Japan are rising again in anticipation that the Fed and other major central banks may have to deliver more rate hikes to bring inflation back down.”

“USD/JPY is currently testing resistance at the 135.00 level which if broken would open the door for the pair to rise back up towards the 200-Day Moving Average that comes in at just over the 137.00 level.”