2016.12.2905:20:00UTC+00Yen Extends Rise After BoJ Kuroda's Comments

The Japanese yen continued to be higher against its major counterparts in early European deals on Thursday, as the Bank of Japan Governor Haruhiko Kuroda said he expects sustained economic growth throughout next year, as well as on rising risk aversion on falling oil prices and weak economic data from the U.S. overnight.

In an interview with Nikkei, Kuroda said that receding headwinds to the global economy, rising Japanese stock prices and a halt in excessive yen gains would help the Japanese economy to have a steady recovery throughout next year.

"Overall, both the global and Japan's economies are moving in a positive and more desirable direction," he added.

Kuroda's comments were interpreted as a possibility of holding off the expansion of monetary stimulus by the Bank of Japan in the near future.

European shares are trading in red, with the banking and mining shares leading the decline, heading towards the end of the year.

Oil prices fell after data from the industry group American Petroleum Institute showed a surprise build of 4.2 million barrel in crude stocks in the week to December 23. Economists were expecting a 1.4 million barrel decline in crude supplies.

The currency has been trading in a positive territory in the Asian session.

The yen spiked up to 116.23 against the greenback, its highest since December 14. If the yen extends rise, 114.00 is possibly seen as its next resistance level.

The yen climbed to more than 2-week highs of 121.60 against the euro and 113.39 versus the Swiss franc, off its early lows of 122.16 and 113.97, respectively. On the upside, the yen may find resistance around 118.00 against the euro and 111.5 against the franc.

The Japanese yen advanced to 142.48 against the pound, its strongest since December 5. Continuation of the yen's uptrend may see it challenging resistance near the 140.00 mark.

Survey results from the Nationwide Building Society showed that U.K. house price inflation accelerated slightly at the close of the year, while price growth in London was below the national average for the first time in eight years.

The house price index rose 4.5 percent year-on-year following a 4.4 percent increase in November. A year ago, too, house price growth was 4.5 percent.

The yen strengthened to a 3-week high of 85.97 against the loonie and and more than a 4-week high of 83.75 against the aussie, up from its previous lows of 86.45 and 84.16, respectively. The next possible upside target for the yen may be found around 83.5 against the loonie and 82.00 against the aussie.

Looking ahead, U.S. wholesale sales and advance goods trade data for November, as well as weekly jobless claims for the week ended December 24 are due in the New York session.