Japanese Prime Minister Shinzo Abe said on Wednesday U.S. President Donald Trump shared his view at last week's summit that Japan's monetary policy was not currency manipulation but was intended to end deflation.
The dollar hit its highest level in 10 days against the yen ahead of a meeting of the U.S. and Japanese leaders on Friday, putting it on course for its best week against a basket of major currencies since mid-December.
Japanese Prime Minister Shinzo Abe is considering increasing energy imports from the United States, two sources familiar with the plan told Reuters, as he prepares to meet President Donald Trump, who has complained about Japan's trade surplus.
In 2013, forex trading was linked intimately to expectations regarding changes in the Federal Reserve’s quantitative easing policy. Certainly, in 2014 market expectations will continue to focus on the future of tapering policy.
The Japanese yen and benchmark Nikkei 225 equity index both broke out of significant consolidations last week. The moves are highly related; in fact, the negative correlation between Japanese equities and the yen has been incredibly consistent over time.