Japanese yen moves higher as Ueda talks up confidence in achieving inflation target

<ul><li>Economy is progressing in line with our forecast</li><li>Our confidence has grown in the achievement of price target</li><li>This confirms economy is proceeding based on existing price outlook</li><li>There is no change in our stance to carefully examine price trends</li><li>Cannot fully grasp impact of earthquakes in Western Japan region just yet</li></ul><p>If you put together the remarks from his press conference so far today, there is a distinct narrative that he is pushing. That being the central bank is feeling "confident" about achieving the 2% inflation target, as the likelihood of that has "risen gradually".</p><p>Yen traders are taking that as a cue from Ueda to mean that they will follow through with a policy change in March or April, after the results of the spring wage negotiations.</p><p>Edit (0650 GMT): USD/JPY now extending losses to 147.34 on the day, contesting a break of its 100-day moving average of 147.50.</p>

This article was written by Justin Low at www.forexlive.com.