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A senior Bank of Japan (BOJ) official said on Tuesday, the Japanese central bank will take appropriate steps as needed by looking at the impact of fx moves on Japan’s economy and long-term price trend.

Additional quotes:

BOJ does not guide monetary policy to influence fx market.

BOJ will carefully watch market moves, including fx.

BOJ is not targeting yen with monetary policy.

Market implication:

The comments have virtually no impact on the yen markets, as USD/JPY remains driven by the broader market sentiment. The risk recovery is seen as the main theme so far this Tuesday following Monday’s bloodbath across the financial markets amid rising coronavirus deaths in Italy, South Korea and Iran.

With a bounce in the US Treasury yields, USD/JPY is looking to regain the 111 level, currently trading at 110.87, up 0.16% on the day.