By Friday, the USD/JPY pair has retreated, maybe even too much – the Japanese economy doesn’t need a strong currency.
During the first week of February, the Japanese Yen has strengthened, perhaps, too much. Investors’ reactions resulted in a directional movement after decision made by BoJ in favor of a negative interest rate –in current financial conditions, this is a compulsory measure and the market does understand it, but still can’t help responding.
The current quote in the USD/JPY pair is 116.71. January’s “bottom” is at 115.97, which is quite close to the current price, and it makes fiscal authorities feel nervous.
Mr. Shinzō Abe, the current Prime Minister of Japan, stated that one shouldn’t react to currency exchange fluctuations too much and pay a lot attention to them. In his morning speech, the politician also confirmed his acceptance of the current monetary strategy of BoJ. Nothing new, but it was quite a surprise to talk about currency exchange rates, because the Yen isn’t as volatile as the currencies of developing economies. Nevertheless, currency movements seem to be quite interesting for the country’s population.
In the nearest future, January Nonfarm payrolls (NFP) in the USA report will be published. Expectations about Unemployment rates and Nonfarm payrolls are quite positive, and the stronger the real numbers are, the faster the US Dollar will grow.
RoboForex Analytical Department
Without authorization, you can view no more than two reviews per day and no more than 10 per month. To continue reading analytical reviews, register or login to your Members Area.