Will Self-Supporting Recovery Help Yen?

The Japanese yen may rebound after its recent recessions against the majors as Masaaki Shirakawa, Governor of the Bank of Japan, expressed hope that the economic recovery, which apparently became self-supporting, will continue.

The sales are increasing since the policy makers doubled the lending program for banks last month, boosting the confidence in businesses and consumers’ purchasing capability despite the falling prices and wages. Shirakawa said today at the news conference: “We have confirmed that the economy is currently picking up steadily and on top of that, we are seeing some signs of future progress.” The forthcoming election may cause the government to demand more support for the economy from BoJ, leading to more policy-easing measures from the bank.

USD/JPY traded today at 93.64 as of 11:42 GMT up from the opening rate of 93.78. GBP/JPY traded near 141.92 after opening at 143.15.

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