(Bloomberg) -- Bank of Japan Governor Kazuo Ueda kept his options open for a further paring back of monetary easing as he avoided sounding clearly dovish with the yen hovering near a 34-year low.

“We have to consider reducing the degree of monetary easing if the underlying price trend rises along with our outlook,” Ueda said in response to questions in parliament Tuesday. “We will carefully consider this at every policy meeting as it depends on incoming data.”

Ueda’s remarks come as yen traders keep a high guard against a potential currency intervention by Japan. If US CPI data out Wednesday proves stronger than expected, the result could further weaken the yen, pushing it beyond the 152 mark against the dollar, a line seen by some investors as a potential intervention mark. 

Read more: BOJ’s Timing for Next Hike in Focus as Ueda Starts Second Year

The currency has languished near the low of more than three decades after unexpectedly weakening in the wake of the BOJ’s first rate hike in 17 years last month. The continued softness suggests investors see the bank’s talk of keeping easy financial conditions in place as too dovish.

During a semi-annual report to parliament, the governor flagged the risk of both a faster and a slower paring of stimulus. If a shock hits the economy, the bank may have to slow down its move while it may have to take faster action if a virtuous cycle of wages and inflation strengthens rapidly, he said. 

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