The week has started with a risk-on mode that limited demand for the Japanese yen in its role of a safe currency. Economic data released from Japan was not helping the yen either.
Japan’s gross domestic product shrank 0.4 percent in the fourth quarter of 2015 according the preliminary estimate, a bit more than analysts’ had predicted. Japanese Prime Minister Shinzo Abe voiced hope that Group of Twenty finance leaders would discuss necessary steps to deal with world economic problems during the meeting in Shanghai next week. Meanwhile, the rally of global stocks and apparent willingness of Chinese authorities to support growth of the world’s second biggest economy made investors less reluctant to risk, meaning that both global and domestic fundamentals were not in favor of the yen.
USD/JPY rallied from 113.38 to 113.98 as of 11:20 GMT today. EUR/JPY gained from 127.35 to 127.73.
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