The Japanese yen slipped against its major rivals on Tuesday's Asian session, as traders focus on the Bank of Japan's two day monetary policy meeting starting today.
The Bank of Japan is expected to keep monetary policy unchanged and will stick to its aggressive approach in achieving the 2 percent target for inflation. Traders focus on BOJ Governor Haruhiko Kuroda's press conference after policy meeting and his currency related comments.
Japan's economy minister Akira Amari said today that he expects the currency levels to stabilise at a point matching the basic strength of Japanese economy.
While speaking at a press conference after the government's regular Cabinet meeting, Amari told that the markets will strike a balance with the currency level and country's imports and exports.
The yen fell to 102.76 against the greenback, reversing from Monday's 4-day high of 101.96. The yen may seek support around 104.00 level.
The yen touched a 4-day low of 132.29 against the euro, down from Monday's close of 131.69. On the downside, the yen may breach 134.00 level.
The yen slipped to a 4-day low of 156.50 against the pound from an early high of 155.82. If the yen extends downtrend, next support lies around 158.00 level.
The yen edged down to 106.04 against the franc, after having reached near 2-week high of 105.07 on Monday. The next support area for the yen is seen at 108.00.
After climbing to 100.13 against the Australian dollar in early trades, the yen pared gains and the pair is worth 100.51. The yen may face next downside target level around 102.5.
Members of the Reserve Bank of Australia's monetary policy board decided that it was appropriate to trim the nation's benchmark interest rate in order to spur economic growth, minutes from the RBA's May 8 meeting revealed today.
Economic growth is expected to come in slightly below trend, the RBA said, strengthening the case for a rate cut.
The yen that finished yesterday's deals at 99.87 against the loonie touched as low as 100.06. Against the NZ dollar, the yen declined to a 5-day low of 83.39. The Japanese currency is poised to break support around 102.00 against the loonie and 85.00 against the kiwi.
New Zealand's inflation expectations sank its lowest level in nearly fourteen years in the June quarter of 2013, a survey by the central bank showed today.
Two-year ahead expectations for year-on-year growth in the consumer price index fell to 2.06 percent from 2.17 percent projected in the March quarter. This was the lowest rate since the December quarter of 1999.
In the European session, German producer prices, U.K. PPI and CPI - all for April are due.
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