The USD/JPY pair is slowly retreating on Monday afternoon, but the market isn’t ready yet to break the three-week trend.
On Monday, the Japanese Yen is trying to regains a least some “weight” lost against the USD earlier. The current quote for the instrument is 110.56. The pair has been bought since November the 5th
, and has been growing since that time without stopping.
There was little statistics on Monday, that’s why the currency market was left “”to its own devices and technical signals.
According to Takako Masai, the Bank of Japan representative, who delivered a speech during a business forum, a high degree of uncertainty on the markets might result in critical disturbances. Her speech, apart from everything else, referred to the election of Donald Trump as the 45th
president of the United States. In Masai’s opinion, any decline in the global economy prospects might do a lot of harm to Japan as well, for instance, reflect adversely on moods of Japanese business structures, which are already too dull. All of this is important for the Bank of Japan, because the regulator has to take into account a lot of aspects when forming its monetary policy.
Today’s report on the country’s Balance of Trade was weak. In October, the indicator went down and was 496.2B, which is much less than expectations of 610B. The Export reduced in October up to -10.3% y/y, the Import – -16.5% y/y.
The demand for the USD dropped temporarily, emotions on stock exchanges calmed down and allow main currencies to recover a bit after November fluctuations.
RoboForex Analytical Department
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