JPY Trading Outlook
The Japanese Yen (JPY) the USD/JPY moved above Y84 in Asia but failed to hold in Europe as the USD strength retreated across most pairs. The recent run up has been quite steady and there has not been a substantial pullback in an almost 8 yen rally from Y76 2 months ago.
The Japanese Yen (JPY) the strongest trend in the market continued overnight with USD/JPY above Y84 by Thursday’s Asian morning and the Yen crosses are also bucking the major’s trend and moving to recent highs. EUR/JPY is in striking distance of Y110.
The Japanese Yen (JPY) the USD/JPY had a slight dip before support was found and buyers reemerged in the US session as traders believe todays rate meetings will expose a widening gap between the Japanese and US monetary policies. Any further expansion of BOJ support for the fragile Japanese economy may prompt more Yen weakness but the main event is the US FOMC statement in the US session.
The Japanese Yen (JPY) had the cleanest reaction to the US jobs data on Friday breaking above Y82 and rallying to Y82.50 after the better than forecast increase of 227k jobs in February and then the positive 60k revision of the previous 2 months leading to strong USD buying. Support is seen on dips and widely expected to continue higher ahead of the FOMC meeting this week.
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