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Home / Analytics / Forex analysis & forecasts / Forex Fundamental analysis / The Yen is too volatile. Overview for 09.11.2016
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The Yen is too volatile. Overview for 09.11.2016

The USD/JPY pair is taking the results of the American presidential elections too heavily; investors need a “safe haven”.

On Wednesday, the Japanese Yen is extremely volatile because of the results of the presidential elections in the USA. Intraday fluctuations are more than two patterns. The current quote for the instrument is 103.43.

Basically, the USD has already eliminated the quick strengthening of the Yen in the morning; the pair fell to 101.19 with big volumes. Trump’s leading the presidential race made investors increase the demand for “safe haven” currencies, and the Yen, as usual, took the stage. The last time the pair moved this way was in summer, when the market was nervous because of the Brexit.

Yoshihide Suga, the country’s current Chief Cabinet Secretary said on Wednesday morning that the country’s authorities were ready to implement measures in case the price of the national currency would fluctuate greatly. Capital markets still haven’t clearly understood possible consequences of Trump’s winning the elections for the American economy and the rest of the world. Right now, only one thing is very clear: the 45th US president won’t be boring at all.  

The Cabinet and the Central Bank of Japan have enough tools for decreasing the volatility, but the key word here is “time”, because any interventions will have a short-term effect only. The market may calm down by Friday, but until then fluctuations will continue.
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