Recently, with the uncertainty and upheaval, the yen has shown some strength. However, the yen is weakening again, and there are expectations that a weaker yen will be the norm moving forward. At least, yen weakness is seen as the most likely “sure bet” in the markets in the near to medium-term future.
For the most part, focus in the markets is on what’s happening in the United States. Forex traders combing through US data, looking for clues about when the Federal Reserve will begin tapering its bond buying program. As Forex traders try to predict the Fed, and as developments in the eurozone offer a little bit of optimism for the 17-nation region, there’s a lot of uncertainty.
What’s a little more certain, though, is that the yen is likely to weaken. Even though there has been some strength recently, the reality is that the Japanese economy still isn’t where officials would like it to be. And that means that more moves that weaken the yen are likely to be made by the Bank of Japan, encouraged along by Prime Minister Shinzo Abe.
At 15:26 GMT USD/JPY is up to 97.6200 from the open at 97.3615. EUR/JPY is up to 130.0275 from the open at 129.9645. GBP/JPY is up to 152.3780 from the open at 152.2750.
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