The Japanese yen attempted to rally yesterday as worsening Chinese macroeconomic indicators spurred risk aversion on the Forex market. The currency was not able to hold onto gains, though, and slipped to the opening level by the close of yesterday’s session and dropped today.
Data from China was not particularly good, hurting the market sentiment and sending riskier currencies down. The yen was able to profit from this, rising for a short time. Yet the rally was short-lived and the currency is falling right now.
Analysts were very bearish on the yen at the start of this year as the Japanese government and policy makers had clearly shown that they prefer weaker currency. Nothing has changed since then, therefore yen’s bearishness will likely persist.
USD/JPY rose from 104.16 to 104.55 as of 6:00 GMT today. EUR/JPY advanced from 141.15 to 141.64 and GBP/JPY was up from 171.09 to 171.81.
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