The Japanese yen erased its early losses against its major counterparts in the Asian session on Monday, following comments from Bank of Japan Governor Haruhiko Kuroda that a rapid fall in the domestic currency could hurt economy and it is desirable that foreign exchange rates should reflect economic fundamentals and move in a stable manner.

The recent depreciation in the yen has been quite sharp and could make it hard for companies to set business plans, Kuroda told Parliament.

"In that sense, we need to take into account the negative effect" of a weak currency," he added.

Kuroda, however, reiterated that the central bank would maintain its massive stimulus programme to support economic growth.

Kuroda's comments came in the wake of currency falling about 10 yen to the dollar in nearly a month amid a divergence between U.S. and Japanese interest rates.

The yen recovered to 164.75 against the pound and 133.97 against the franc, after falling to more than a 6-year low of 165.43 and 4-day low of 134.46, respectively in early deals. The yen is likely to find resistance around 161.00 against the pound and 124.00 against the franc.

Reversing from its prior lows of 93.72 against the aussie and 85.79 against the kiwi, the yen climbed to 5-day highs of 93.08 and 85.15, respectively. The next possible resistance for the yen is seen around 90.00 against the aussie and 82.00 against the kiwi.

The yen came off from a previous low of 100.47 against the loonie and a 1-week low of 137.03 against the euro, recovering to 99.96 and 136.45, respectively. The yen is seen finding resistance around 96.00 against the loonie and 133.00 against the euro.

The yen rose to 126.24 against the greenback following Kuroda's comments, from nearly a 20-year low of 126.79 seen at 8:35 pm ET. The USD/JPY pair had stablized since then and was worth 126.59.

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