Ebola stabilized the yen
24.10.2014
New information on the spread of the Ebola virus supported the Japanese yen in the restoration to the USD, but not for long.
On Friday, the yen was able to take advantage of the short-term reason for the correction. News about another potential patient hospitalization with the Ebola virus in the Asian session played against the dollar and USD/JPY pair has weakened for the first time in the last seven sessions.
Of course, this is only a temporary speculative reason for the rebound of the yen, and it will not last for long. But the fact that the pair reacted is positive - if suddenly the news flow will bring something "minor" for the dollar, the yen will immediately take advantage of this.
The monthly view of the buying channel for the USD/JPY pair is still rising and a retest of the figure on 110.0 is quite realistic.
So long as the Bank of Japan will stimulate the economy and drive inflation to 2%, and slightly above, the Japanese yen will remain in a losing position. And comments this week about the rate of economic growth of Japan being below the planned levels, only adds extra fundamental pressure on the yen.
RoboForex Analytical Department
On Friday, the yen was able to take advantage of the short-term reason for the correction. News about another potential patient hospitalization with the Ebola virus in the Asian session played against the dollar and USD/JPY pair has weakened for the first time in the last seven sessions.
Of course, this is only a temporary speculative reason for the rebound of the yen, and it will not last for long. But the fact that the pair reacted is positive - if suddenly the news flow will bring something "minor" for the dollar, the yen will immediately take advantage of this.
The monthly view of the buying channel for the USD/JPY pair is still rising and a retest of the figure on 110.0 is quite realistic.
So long as the Bank of Japan will stimulate the economy and drive inflation to 2%, and slightly above, the Japanese yen will remain in a losing position. And comments this week about the rate of economic growth of Japan being below the planned levels, only adds extra fundamental pressure on the yen.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.