Japanese Yen Lower Against Majors

The Japanese yen slipped against its major counterparts in the European session on Thursday, amid a divergence in monetary policies between the Bank of Japan and the U.S. Federal Reserve.

While the Fed signaled aggressive rate hikes to fight inflation, the BoJ is expected to maintain ultra-loose monetary policy to attain the inflation target.

Several policy makers including Fed Chair Jerome Powell suggested that the central bank is prepared to adopt a more aggressive approach in normalizing monetary policy.

In contrast, the BoJ is expected to maintain an accommodative monetary policy to support the economy.

NATO leaders are meeting in Brussels to discuss the consequences of President Putin's invasion of Ukraine, the role of China in this crisis, and next steps to strengthen the alliance's deterrence and defence.

U.S. President Joe Biden has arrived in Brussels for a meeting of NATO, European Union and the G7 Group of Nations.

The yen held lower at 130.47 against the franc, which was its lowest level since July 2015. Against the greenback, it touched more than a 6-year low of 121.75. The currency may test support around 132.5 against the franc and 124.00 against the greenback.

The yen declined to 160.68 against the pound and 133.78 against the euro, off its early highs of 159.59 and 132.95, respectively. The yen is seen finding support around 164.00 against the pound and 135.5 against the euro.

The yen depreciated to 6-1/2-year lows of 91.04 against the aussie and 96.86 against the loonie, reversing from its early highs of 90.52 and 96.23, respectively. If the yen falls further, it is likely to test support around 94.00 against the aussie and 98.00 against the loonie.

The yen was down against the kiwi, at 84.63. On the downside, 88.00 is possibly seen as its next support level.

Looking ahead, U.S. durable goods orders for February and weekly jobless claims for the week ended March 19 will be featured in the New York session.