The Japanese yen rose today, advancing for the second session and rebounding from the lowest level since 2010 against the US dollar, on speculations that the recent drop was excessive and on hopes for improvement of the Japanese economy.
Traders were buying yen on view that the huge decline, that currency was experiencing since the new government had taken power, was excessive. Additionally, specialists predict that the Japanese economy may improve over the year. The official projections for Japan’s growth were increased from 1.7 percent to 2.5 percent for the 2013–14 period, while inflation is expected to reach the 0.5 percent mark.
Forex market analysts believe that the yen should consolidate against the dollar ahead of the important reports this week. The Federal Reserve will announce its monetary policy decision on Wednesday and non-farm payrolls will be released on Friday and it is not wise for traders to take bold actions in face of any data that can affect the market in a noticeable way. At the same time, the Japanese currency may advance versus the euro as experts predict that the eurozone unemployment may reach a record.
USD/JPY fell from 90.83 to 90.55 as of 23:59 GMT today. EUR/JPY went down from 122.20 to 121.79 and GBP/JPY declined from 142.55 to 142.12.
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