USD/JPY remains in daily range below 108 following Kuroda comments
- BoJ's Kuroda says they will continue with powerful monetary easing.
- 10-year US Treasury bond yield erases 1% on Monday.
- US Dollar Index looks to finish the day in the positive territory.
The USD/JPY pair is having a hard time finding direction in the second half of the day and continues to move sideways below the 108 mark. As of writing, the pair was up 0.2% on the day at 107.90.
Speaking at the International Monetary Fund's 2019 Michel Camdessus Central Banking Lecture, Haruhiko Kuroda, Governor of the Bank of Japan, said that the BoJ will persistently continue with powerful monetary easing with an aim to maintain the momentum toward achieving the 2% inflation target but these comments failed to trigger a reaction in the pair.
"Uncertainties regarding the global economy have been heightening, and some nervousness has been seen in global financial markets," Kuroda said on the global economic outlook.
Meanwhile, the 10-year US Treasury bond yield, which shows a strong correlation with the pair, is down 1% on the day, not allowing the pair to gain traction.
On the other hand, the US Dollar Index is looking to close the day in the positive territory ahead of this week's crucial PMI and durable goods orders data, adding 0.17% on the day at 97.25. The only data from the U.S. today showed that the Chicago Fed's National Activity Index came in at -0.02 to fall short of the market expectation of 0.1.
Technical levels to watch for