“We think that underlying inflation is still a bit below our target,” said Bank of Japan (BoJ) Governor Governor Kazuo Ueda said at a Federal Reserve research symposium on Saturday per Reuters.

The policymaker added, “This is why we are sticking with our current monetary easing framework."

BoJ’s Ueda conveyed expectations of witnessing a decline in inflation from here while also stating that the underlying trend still less than the target.

BoJ’ Ueda also cited a healthy trend in the domestic demand and record high profits that bolstered the business fixed-investment to flag the inflation fears.

USD/JPY grinds higher

Even if the USD/JPY is yet to react to the news, due to the wait for Monday’s Tokyo open, the Yen pair stays on the front foot around 146.45 after refreshing the Year-To-Date (YTD) high the previous day.