The Yen retreated and got stabilized. Overview for 20.09.2017

20.09.2017

On Wednesday morning, the USD/JPY pair is falling a little bit; the Yen has been corrected enough.

In the middle of the week, the Japanese Yen stopped getting weaker against the USD and got stabilized. The current quote for the instrument is 111.46.  

In the morning, Japan reported on the Balance of Trade in August, which was ¥114B, better than expected. However, it’s still less than the July number, but the market wasn’t disappointed. The components of the report show that the Export added 18.1% y/y (to the USA by 21.8% y/y, to the Asian countries by 19.9% y/y).  The Import from the USA expanded by 5.7% y/y and from the Asian countries by 15.2% y/y.

On the one hand, the seasonal factor and the low demand for the Yen as a “safe haven” asset help the USD to completely recover against the Yen. On the other hand, the two-day meeting of the US Federal Reserve will be over and the market may get too volatile late in the afternoon due to the comments from the American regulator.

The “safe haven” status of the Yen got weaker only for a while. If the Fed doesn’t provide any information about another key rate increase this year and announces the necessity to spend money from the budget to restore the places that suffered from hurricanes, the USD will fall.

 

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.