0
 

Forex - USD/JPY up after IMF says yen has fallen too much

By Investing.com  |  Forex News  |  Jun 03, 2013 01:33AM GMT  |   Add a Comment
 
AA
+
-
Investing.com - The U.S. dollar gained ground against the Japanese yen during Monday’s Asian session even after the International Monetary Fund said last week the yen has depreciated too much too rapidly.

In Asian trading Monday, USD/JPY rose 0.18% to 100.62 after earlier trading as high as 100.73. The dollar fell 0.55% last week against the yen. The pair is likely to find support at 99.85, the low of April 13, 20090 and resistance at 101.27, Friday’s high.

Forex - USD/JPY up after IMF says yen has fallen too much
Last Friday, the International Monetary Fund warned Japan that the yen is weak enough, reversing comments where it said the Japanese currency was overvalued. The IMF said "We appreciate that the attempt to escape deflation has had an effect on the exchange rate and our assessment is right now that leaves the exchange rate moderately below what would be consistent with medium-term norms."

A study by the Peterson Institute for International Economics, a Washington-based think tank, echoed those comments. That group said the yen has fallen too far and that the Group of Seven nations may consider intervening the foreign currency market in an effort to stem the tide of their currencies’ gains against the yen.

The yen has fallen 25% since September, though the G7 has largely been supportive of Japan’s efforts to combat deflation through a falling currency.

The U.S. Treasury recently said it was keeping an eye on Japan to ensure the countries policies are aimed at defeating deflation not directly weakening the yen.

The Peterson Institute for International Economics said it was still unclear whether USD/JPY’s recent flirtation with 100 is a legitimate reversal or just a blip before the yen weakens further against the greenback.

Elsewhere, EUR/JPY rose 0.21% to 130.82 while AUD/JPY climbed 0.55% to 96.72. NZD/JPY added 0.37% to 80.13.



Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Dollar mixed to lower on U.S. home sales figures
By 
Investing.com
 - Apr 23, 2014
USD/JPY slides on soft U.S. home sales figures
By 
Investing.com
 - Apr 23, 2014

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

NZD/JPY
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg