On Monday, Bank of Japan’s governor Haruhiko Kuroda expressed confidence that the Japanese economy could witness a moderate expansion and help inflation climb higher towards the 2% target.

Kuroda made these remarks while addressing the central bank’s regional branch managers during their quarterly meeting. Japan’s economy has been reeling under the US-China trade tensions lately as it is an export-oriented economy and China is one of its leading trade partners. As manufacturing in China declines, Japan’s export orders have witnessed a fall in recent times.

At the start of a new trading week, USD/JPY is trading at around 108.43, strengthened by the US dollar climbing higher on the back of Friday’s NFP release.