USD/JPY rallies towards 148.00 on BOJ’s dovish rhetoric, Japan’s stimulus news

USD/JPY extends its relentless rally in the European session this Thursday, as the Bank of Japan’s (BOJ) status-quo on its monetary policy settings combined with the dovish rhetoric from Governor Haruhiko Kuroda revived the yen selling.

The pair is rallying 1% on the day to trade at 147.71, looking to recapture the 148.00 level. In doing so, the major is staging a solid comeback from the 146.00 support zone, tested on the central bank’s policy announcements.

Meanwhile, Japanese Prime Minister Fumio Kishida said on Friday, “with the package, govt will aim to push down Japan's CPI by 1.2% or more.”

Additional quotes

“Will take steps so Japan doesn't experience the kind of 10% inflation seen in the US, European countries.”

“Will seek cooperation of business lobby Keidanren, union umbrella rengo to ensure wages rise enough to compensate accelerating inflation.”

The country’s Finance Minister Shunichi Suzuki said that they are aiming to enact extra budget by the year-end.

He added that “Japan's fiscal situation has become more severe due to rounds of stimulus to cope with covid.”

USD/JPY technical levels