The Japanese yen declined today against the other major currencies as the stock markets corrected after the yesterdays fall and the yen became too overbought.
The traders also expect a worst in 30 years business confidence index to be reported by the Bank of Japan tomorrow. The yen is currently losing largely against the euro as the market participant believe that the European Central Bank will state that it will stop reducing rates after the next cut, which expected to be announced this week (April 2).
Some analysts go as far as saying that the lower business confidence index that will be reported tomorrow will push the yen out of the list of «safe haven» currencies and, lacking the higher interest rate, it will be the major Forex outsider in the near future. Of course, if the confidence index is reported at a reasonably better value, the yen may go up significantly.
USD/JPY rose from 97.43 to 98.32 as of 9:07 GMT today. EUR/JPY advanced from 128.63 to 130.64 today, while GBP/JPY went up from 138.97 to 140.38.
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