Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

It's Time To Buy Yen

Published 06/30/2017, 07:06 AM
Updated 07/09/2023, 06:31 AM

The market has focused on one key issue — the tone of central bankers' comments. That's why we have seen euro and pound rising, while the yen fell against US dollar.

The ECB and the BOE adopted a more hawkish position than the market expected, the Fed didn't surprise by the words "gradual rate increase", and the BOJ keep saying it's too early to remove the stimulus.

However, the USD/JPY moves on Thursday make us think the reversal is coming. Weaker-than-expected GDP coupled with decreasing Personal Consumption point to a subdued inflation pressure. And it means the Fed has no reason to rush with further rate increases.

On Friday, we'll see a series of reports from Japan and the USA. Stronger Japanese inflation coupled with weaker Chicago PMI and Personal Spending from the US may support the USD/JPY selloff with the nearest target at 111.00 once 111.70 support is broken.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.