Forex News: Yen Extends Gains As BoJ Meeting Looms

Yen Extends Gains As BoJ Meeting Looms

(RTTNews) - The Japanese yen extended gains against its major counterparts in the European session on Friday, as Tokyo inflation exceeded expectations in October, ahead of the Bank of Japan's monetary policy decision due next week.

Tokyo inflation was up 3.3 percent on year in October, exceeding expectations for an increase of 3.1 percent and up from 2.8 percent in September.

Core CPI, which excludes volatile food prices, added an annual 2.7 percent - again exceeding forecasts for an increase of 2.5 percent, which would have been unchanged.

Sticky inflation is likely to put pressure on the BoJ to deliver a policy tweak and revise the inflation outlook.

Japan's Chief Cabinet Secretary Hirokazu Matsuno said that the central bank is expected to coordinate closely with the government and guide "appropriate" monetary policy to sustainably attain its 2% inflation target.

The yen climbed to a 3-day high of 149.61 against the greenback and a 10-day high of 165.90 against the franc, off its early lows of 150.41 and 167.33, respectively. The next possible resistance for the yen is seen around 147.00 against the greenback and 162.00 against the franc.

The yen advanced to 157.99 against the euro and 181.55 against the pound, from its previous lows of 158.88 and 182.50, respectively. The yen is seen finding resistance around 155.00 against the euro and 180.00 against the pound.

The yen touched 108.00 against the loonie, setting a fresh 3-week high. Next key resistance for the currency may be located around the 106.00 level.

The yen edged up to 95.01 against the aussie and 87.20 against the kiwi, reversing from its early 2-day lows of 95.36 and 87.68, respectively. The currency may face resistance around 93.00 against the aussie and 86.00 against the kiwi.

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