The Japanese yen jumped today even though analysts speculated that the currency should fall because both technical and fundamental indicators provide no support for a rally.
Fundamental analysts argue that there are no specific reasons for the yen to rise. Calming of the situation in Ukraine, signs of economic growth in the United States and hopes for China’s government to stimulate growth of the Chinese economy — all these factors switched the Forex market in the risk-on mode, damping demand for safer currencies. Technicians are also in the bear camp, pointing out that various technical indicators promise a drop of the currency.
The major positive event for the Japanese currency lately was the Bank of Japan policy meeting, where the central bank refrained from expanding the already existing monetary accommodation. Yet BoJ Governor Haruhiko Kuroda signaled that there might yet be need for stimulus, and this is bad for the yen.
USD/JPY went down from 101.96 to 101.82 as of 22:18 GMT today, touching the low of 101.63 intraday. EUR/JPY dropped from 139.02 to 138.42 and GBP/JPY dipped from 171.40 to 170.17.
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