Japan’s Top FX Diplomat Kanda: BoJ likely to revise inflation projections up

"Bank of Japan (BoJ) likely to revise inflation projections up," said Japan's top currency diplomat Masato Kanda per Reuters on early Monday.

The diplomat initially ruled out capacity to comments on the BoJ monetary policy moves but also suggested that the prices and wage hikes do overshoot the inflation forecasts.

Japan's Vice Finance Minister for international affair Kanda also cited a change in the corporate wage behaviour.

Market reaction

USD/JPY pauses four-day uptrend at the highest levels in two weeks after the macro announcement, mildly offered near 141.65 amid the early hours of Monday’s Asian session. That said, the Yen pair rallied heavily the previous day on the BoJ chatters.

Also read: USD/JPY oscillates around the 141.70 area ahead of BoJ, Fed rate decisions