On Monday morning, USDJPY is trading downwards; the demand for the Yen may increase due to investors’ needs for “safe haven” assets.
The Japanese Yen is strengthening against the USD on Monday morning, although the pair is moving very carefully. The current quote for the instrument is 107.23.
Investors’ interest in “safe haven” assets revived after the USA, the UK, and France carried out a missile strike against some government installations in Syria. The reason for the strike was an assumption that these installations might produce chemical warfare. Anyway, the strike was single. Investors could have responded to this news more actively, but the strike was announced in advance, so they weren’t surprised by it at all.
Japan itself had something to offer the currency market. Investors barely paid attention to the information that the Bank of Japan wasn’t going to alter its monetary policy in the nearest future. Instead of this, they are very interested in media frenzy over the Japanese Prime Minister Shinzō Abe. According to Nippon TV, Abe’s rating is 27%, the lowest ever since he has held power.
Another opinion that comes from Asahi shows the other number, 31%. At the same time, the Cabinet of Ministers and its policy are supported by only 37% of the country’s population. There is no need to say that it’s very small number.
For the Yen, deterioration in relations between people and the acting government is a reason to grow, because any complications in politics and economy result in demand for “safe haven” assets.
RoboForex Analytical Department
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.
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