Forex Flash: USD/JPY pressured by conflicting comments of Japan leaders – TD Securities

The USD/JPY rally from 89 to 94 in the month since January 21/22 Board meeting driven by expectations of a firmer 2% target and the decision to undertake open ended buying in 2014 once the 2013 program expired. Just ahead of the minutes of this meeting, conflicting headlines from PM Abe and Finance Minister Aso in the last 24 hours have been weighing on the pair. “The two officials are in conflict as to whether the BoJ will purchase foreign bonds and if there will be law to change the stance of the Bank’s independence from the govt (Abe said yes, Aso said no)”, wrote TD Securities analyst Annette Beacher.