The USD/JPY currency pair posted a minor recovery from yesterday’s losses during the Asian session, but these gains were quickly reversed during the early North American session. The pair seemed to recover briefly as the uncertainty around Donald Trump‘s presidency waned slightly, but went ahead to establish a sideways trend as the selling pressure on the greenback increased after James Bullard‘s dovish comments.
Although the currency pair has been trading in a range for most of today, it rallied from its daily low to a high posting a gain of over 60 points at 14:00 GMT.
The USD/JPY movements were largely triggered by the increased selling pressure on the US dollar, which weakened it against most of its peers. There were no economic releases from the US docket, hence, the greenback’s movements were largely due to the political controversies brewing in the United States.
Investors seem to have lost confidence in the US dollar given that the US Dollar Index was trading below its opening price of 97.85 for most of the day. The safe-haven appeal of the Japanese yen also contributed to the currency pair’s bearish bias as investors bought the yen instead of the greenback.
The currency pair’s future performance is likely to be affected by the release of Donald Trump‘s budget and James Comey‘s testimony, both scheduled for next week.
The USD/JPY was trading at 111.40 as at 19:03 GMT having recovered from daily lows of 111.00 earlier today. The EUR/JPY was trading at 124.83 having opened the day’s session trading at 123.77.
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