USD/JPY whipsaws lower and then higher on alternating risk-on risk-off caused by Middle East tensions.
Governor Ueda talks about defending the Yen from further weakness and currency-induced imported inflation.
USD/JPY price chart shows bearish Hanging Man forming, boding ill for future price action.
USD/JPY is trading in the 154.50s on Friday after declining to a low for the day in the 153.00s on the back of a spike in safe-haven demand that disproportionately favored the Japanese Yen (JPY).
An escalation in Middle East tensions, triggered a flight to safety overnight after news of bomb explosions in Iran. The attacks were thought to be orchestrated by Israel in retaliation for the drone armada sent by Iran on April 13.
Although the US Dollar benefited from the flight to safety, JPY gained more from the shift in sentiment, pushing down USD/JPY which expresses the number of Japanese Yen purchasable with one US Dollar.
The pair subsequently recovered as tensions eased, however, and a senior Iranian official reportedly stated Iran has no immediate plans to retaliate, according to Reuters.
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