Yen strong on Hamada comments and equity pullback

Yen has regained its footing back from the doldrums last week posing a strong show against Dollar this week so far. Focus is on Friday, when Bank of Japan (BOJ) policymakers will to meet to decide next move   in monetary policy.

Till the time mood has been set by Koichi Hamada, key economic adviser to Japanese Prime Minister Shinzo Abe who suggested no action needed from BOJ in next meeting or two. According to Mr. Hamada, as long as Jobs to applicant ratio and unemployment rate remains tight, BOJ can choose to wait before further action. He also added that as long US monetary policy is keeping the Yen weak, BOJ may take a breather.

On the other hand equities are also lending a hand to Yen, which are in back foo ahead of FOMC tomorrow. Investors are marginally moving into safe havens such as Yen after four weeks of consecutive rise in equity.

Weak Dollar is also contributing to Yen's rally.

Yen is currently trading at 120.4 against Dollar, up close to 100 pips against Dollar since Friday's high.