OctaFX | OctaFX Forex Broker
Open trading account

Forex Flash: USD/JPY poised to extend higher to 105.00/50 – BTMU

FXstreet.com (Barcelona) - The USD/JPY’s break above key psychological resistance at the 100-level has also encouraged further yen selling. According to the BTMU Research Team, “Yen weakness appears likely to extend further in the near-term with little technical resistance for the USD/JPY until around the 105.00 to 105.50 area, which should encourage speculative selling.”

There is a clear risk that yen weakness may prove more front-loaded than we had expected. Yen selling will also have been encouraged by the outcome from the G7 meeting where officials reiterated that they will tolerate yen weakness as long as it results from the use of domestic instruments to stimulate the Japanese economy and overcome deflation. So far the scale of yen weakness is not yet enough to draw greater coordinated concern amongst the international community. In a Nikkei report, Economy Minister Amari stated that an overly strong or weak yen is bad for the economy although declined to give suitable levels.

Recent yen weakness has again coincided with a sharp sell off in the Japanese government bond market with 10-year JGB yields rising by close to 20 basis points over the last two days towards 0.80%.

Schäuble suggests revising EU treaties to make way for banking union

German finance minister Wolfgang Schäuble told the Financial Times today that the banking union could not be completed without a modification of EU treaties. The process of changing them however could last several months or even years.
Read more Previous

Forex Flash: JPY in focus after G7 – Deutsche Bank

The yen continues to be in focus after briefly trading above 102 during the Asian session this morning before meeting resistance. Over the weekend, G7 finance ministers and central bankers reaffirmed their February commitment to "not target exchange rates", according to UK Chancellor Osborne.
Read more Next
Start livechat