Yen Slides To 24-Year Lows As Kuroda Reaffirms Dovish Resolve

Spot USD/JPY soared to a new 24-year high, with the move facilitated by comments from BoJ Gov Kuroda, who reaffirmed the central bank's commitment to its powerful monetary easing. The rate's move past prior intervention levels put participants on the alert for signs that officials might be stepping in.

• Kuroda said at the IIF annual meeting that the BoJ has to "continue our monetary easing until we achieve the 2% target in a sustainable and stable manner," flagging the need to maintain support for the economy as it recovers from the pandemic.
• U.S./Japan yield spreads narrowed Wednesday, with 2-year gap 1.9bp thinner and 10-year differential down 5.3bp come the end of play.
• Risk sentiment remained negative, with equity benchmarks finishing in the red. The VIX index was little changed.
• USD/JPY 1-week risk reversal rose to a two-week high of 12.6% and is extending gains this morning, last sitting at 12.7%.
• USD/JPY last deals at Y146.78, down 13 pips on the day. A sell-off past Sep 22 low of Y140.36 is needed to highlight a top. Conversely, a clearance of yesterday's Y146.97 peak would open up Aug 1998 high of Y147.66.
• There are only second-tier releases on the Japanese docket during the remainder of the week.