BOJ's Kuroda says will carefully watch FX moves and its impact on the economy

Further comments by BOJ governor Haruhiko Kuroda

• Will also watch for the impact on inflation/prices
• Desirable for FX rates to move in a stable manner
• Also desirable for it to reflect economic fundamentals

He's also touching a little bit on the trade war saying that it could potentially cool business sentiment. This is something that Kuroda will be hoping gets resolved in talks between Abe and Trump this week.

Should the US begin targeting Japan in the trade rhetoric, expect the yen to pick up a bid or two. And that will push the BOJ further away from wanting to achieve its inflation goal.