JPY Trading Outlook
The Japanese Yen (JPY) the major was pulled down yesterday after the large falls in US stocks led to a cross sell off. EUR/JPY was the weakest down to Y108 before stabilizing. The outlook is mixed with improving US data and tightening monetary policy outlook having to fight against general risk aversion. US jobs data is ahead on Friday and will be the next key risk event.
The Japanese Yen (JPY) has a very close relationship with the US monetary policy with both countries at near 0% interest rates and both seen as safe havens. The FOMC minutes allowed a reversal on USD/JPY weakness which had tested support under Y82 earlier in the day to trade towards Y83.
The Japanese Yen (JPY) the USD/JPY was the strongest hit by the USD reversal falling down to Y82 as crosses as well reversed in a rare day on Yen strength even as stocks rallied. The outlook is mixed with the FOMC minutes tonight critical for the US monetary policy. Traders do not fully believe the BOJ claims to keep doing extraordinary new measures to support the economy going forward.
The Japanese Yen (JPY) the USD/JPY rallied sharply on Friday reacting to the USD yield change and surging to Y83. The Japanese central bank (BOJ) is trying to stress to the market it will be holding rates low for the longest time going forward but the USD/JPY rally has stalled recently and we may need stronger US data to push the major higher still.
Go to Japanese Yen (JPY) Archive



