JPY Trading Outlook
The Japanese Yen (JPY) was in the headlines with a BOJ meeting where the outgoing Governor Shirakawa made the case for the recent monetary expansion to get the Japanese economy out of recession. The Market was stable until the European GDP shocks sent the EUR/JPY and the USD/JPY back plummeting to fresh week lows.
The Japanese Yen (JPY) USD/JPY rallied off the Y93 level but profit takers capped at Y93.80 and we have seen the major and EUR/JPY fall back ahead of the BOJ today. Some expect the BOJ to pay lip service to global concerns about the recent Yen weakness ahead of the G20 meeting on Saturday. New FED Member George from the US spoke overnight was concerned about the size of the FED balance sheet and this helped 10yr US Bond Yields Rally and further support the USD/JPY this time from the USD side.
The Japanese Yen (JPY) USD/JPY shot above Y94 on the US treasury comments in Asian yesterday before falling all day and catching the market long ahead of the BOJ event risk tomorrow. So far in Asia Wednesday we have fallen through Y93 and still searching for support as profit takers are joined by short term speculators.
The Japanese Yen (JPY) USD/JPY returned aggressively to the uptrend soaring from Y92.50 to fresh trend highs above Y94 after comments from the US Treasury Official Brainard that the US endorses Japans effort to end deflation and boost growth. EUR/JPY is leading again up to above Y126 from Y123 Asian open.
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