FXStreet (Łódź) - Following the BoJ's decision to maintain monetary policy unchanged in May, Governor Haruhiko Kuroda said at the subsequent press conference that the positive cycle in Japan's economy was taking hold and that the recovery should continue at a moderate pace.

He signaled that the central bank would carry on with its QE policy, as the economy was “halfway to its 2% price target.” He assured that data would be monitored to determine the end of deflation.

"On the other hand, the U.S. economy is doing pretty well and so monetary policy is in the phase of tapering,” Kuroda added. “When you take into account such domestic and external economic developments, as well as market moves, there is no reason why the yen should strengthen."

Kuroda stressed that the situation in the labor market had improved and that wages should continue rising. The BoJ Governor also reiterated that the impact of the sales tax hike, implemented in April, should start diminishing during the summer months.

The lack of hints on additional easing in Kuroda's speech pushed USD/JPY to the 100.75 region, while the EURJPY slid to 138.23 and GBPJPY to 169.80.