There is some speculation that the Japanese yen might have reached a bottom. The yen is currently trading higher against its major counterparts today. Some of it could be risk aversion, though. Even though European and Asian markets did well, US markets are struggling on the latest jobs data news.
Japanese yen is moving higher today, thanks in part to weakness seen in other currencies. Even though there is chatter that the Federal Reserve won’t change its taper plan in light of the most recent and disappointing jobs data, there are still concerns about what’s next for US monetary policy. And euro weakness has been something of a theme over the past week. As a result, it’s little surprise that Forex traders are buying into yen strength as it related to euro weakness.
Right now, there are thoughts that the yen might have reached a bottom. Even though more stimulus might be introduced by the Bank of Japan in coming months, there is still the prospect of a tax hike on the horizon. For now, yen seems to be in favor.
At 16:03 GMT USD/JPY is down to 104.2105 from the open at 104.8040. EUR/JPY is down to 142.4630 from the open at 142.5840. GBP/JPY is down to 171.7400 from the open at 172.7290.
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