2019.03.0405:59:00UTC+00Yen Rises As BoJ Kuroda Suggests Discussing Stimulus Exit At Proper Time

The Japanese yen strengthened against its major counterparts in the early European session on Monday, after the Bank of Japan Governor Haruhiko Kuroda remarked that the Japanese economy has escaped deflation and the central bank would discuss and convey its exit strategy from stimulus plan at appropriate time.

The economy is maintaining momentum in order to attain the BOJ's price target, Kuroda told parliament.

"To ensure markets remain stable, it's important to come up with a strategy and guidance at an appropriate timing on how to proceed with an exit," Kuroda said.

"When the appropriate time comes, we will debate at our policy meetings an exit strategy and guidance, and communicate them appropriately," he added.

Data from the Bank of Japan showed that Japan monetary base rose 4.6 percent on year in February - coming in at 493.098 trillion yen.

That was down from the 4.7 percent gain in January.

The currency has been trading higher against its major counterparts in the Asian session.

The yen rose back to 111.83 against the greenback, from a low of 112.01 seen at 8:45 pm ET. The yen is seen finding resistance around the 110.00 level.

The yen appreciated to 126.81 against the euro and 111.63 against the franc, off its previous lows of 127.38 and 112.13, respectively. If the yen rises further, 125.00 and 110.00 are possibly seen as its next resistance levels against the euro and the franc, respectively.

The yen strengthened to a 4-day high of 84.08 against the loonie, after having dropped to 84.34 at 11:15 pm ET. The yen is poised to challenge resistance around the 82.5 level.

The yen reversed from its early lows of 76.44 against the kiwi and 79.56 against the aussie, rising to 76.06 and 79.16,respectively. The next possible resistance for the yen is seen around 74.00 against the kiwi and 77.5 against the aussie.

After falling to 148.31 against the pound at 2:30 am ET, the yen reversed direction and recovered to 147.93. Next key resistance for the yen is seen around the 146.00 level.

Looking ahead, U.S. construction spending for December is scheduled for release in the New York session.