Japanese Yen Holds on to Some of Its Gains

Japanese yen is holding on to some of its earlier gains, remaining higher against some of its major counterparts. However, there is still talk from Japanese policymakers that have the effect of weighing on the yen a little bit.

Earlier, the yen got a bit of a boost with the release of PMI data. Markit shows that Japanese PMI came in at 51.3 in January. Even though that number was slightly down from the 51.7 reading in December, it is still an indication of expansion. Overall, there is a reasonable amount of optimism that the Japanese economy remains in recovery mode, even after last April’s sales tax hike.
As a result of the news, the yen logged some gains against its major counterparts. Yen is pulling back a bit, but still holding on to some of its gains. A statement from Bank of Japan Deputy Governor Kikuo Iwata seems to be trying to keep things in balance. Policymakers probably aren’t quite ready for the yen to gain a great deal against its major counterparts.
At 11:16 GMT USD/JPY is lower, dropping to 117.4890 from the open at 117.5140. EUR/JPY is also lower, down to 134.3750 from the open at 134.9350. GBP/JPY is higher, though, rising to 178.3870 from the open at 178.2420.

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