USD/JPY rallies to highest levels since March 2017 on dovish Kuroda

• USD/JPY has rallied in Tokyo to the highest levels since March.
• USD/JPY is strong on BoJ minutes and Kuroda commenting.
• USD/JPY higher on spread with a high of 2.3505%.

USD/JPY shot up in the Tokyo opening hour and has run up the highest levels March earlier this year where the pair traded at a high of 115.49 for that month. 

US yields were somewhat subdued last week, even in the recovery bounce post the release of the nonfarm payrolls data when a high of 2.32% was achieved. USD/JPY need rates to take the lead from here and should there not be a follow through, fading and profit taking could on the cards. 

The upside comes in the comments from Kuroda after The Bank of Japan maintained the status quo with a null effect on the Japanese currency last week. Today, he has stressed the need to keep the powerful monetary easing in place in order to achieve the 2 percent inflation target.

Trump has also been crossing the wires on his visit to Asia this week:

"Trump to Japan business leaders: we want to make the United States the most attractive place for you to hire, to invest and to grow."

USD/JPY levels

Jim Langlands at FX Charts explained that "on the topside, strong resistance now lies at 114.40/50 but above which could see a test of the descending trend resistance, currently at around 114.90. A break of 115.00 would then see little resistance until 115.20 and then 115.50."