Yen Gains Ignoring Unfavorable Data

The Japanese yen gained today even though economic data that came out from Japan during the current trading session was not particularly good. The possible reason for the rally is risk aversion that followed the policy announcement from the Federal Reserve.
Both Japan’s and Tokyo core Consumer Price Index fell. The seasonally adjusted unemployment rate rose in September. Household spending declined 5.6 percent in the previous month from a year ago, more than was expected by analysts.
The Bank of Japan will make a monetary policy decision later today, which will be followed by a press-conference from Governor Haruhiko Kuroda. His words may affect the yen strongly.
The Fed ended its asset-purchase program on Wednesday, sending all most-traded currencies, with the exception of the dollar, down and putting the Forex market in the risk-averse mode.
USD/JPY traded flat at about 109.26 as of 00:14 GMT today. GBP/JPY slipped from 174.83 to 174.71, and EUR/JPY inched down from 137.82 to 137.69.

If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *