The Yen stopped weakening. Overview for 26.04.2018
On Thursday morning, USDJPY stopped growing; investors are waiting for the news.
The Japanese Yen stopped falling against the USD on Thursday morning. The current quote for the instrument is 109.30; during the drawdown, the Yen fell to the lows it reached on February 6th.
Investors’ demand for “safe haven” assets, including the Yen, declined in the second half of April, when trade wars between the USA and China calmed down. Apart from this, the USA published several quite strong statistical reports this week, which made investors think about possible growth of the inflation in the USA. It resulted in the 10-year-bond-yield growth – yesterday it was more than 3%, the highest since January 2014, and supported the American currency.
Today, there is no news or statistics from Asia in the macroeconomic calendar. Among interesting things, one should pay attention to the comments of Seiko Noda, the Japanese Minister of Internal Affairs and Communications, according to which the Bank of Japan should stop chasing the inflation target of 2%.
In addition to this, Noda thinks that the Japanese regulator should decrease this target below 2%, because it’s closer to reality, and stop “injecting funds” into the economy by means of the QE program. However, the Yen didn’t respond to her words at all, because it’s not the first time such comments are coming from Japanese politicians.
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.