Shake in USD/JPY Could Just be the Beginning

2
90
Stock Markets in Asia Opens With Mixed Trend over Chinese Liquidity Concerns
Stock Markets in Asia Opens With Mixed Trend over Chinese Liquidity Concerns

Just a day following the dollar slumping to its lowest intraday fall since three years against the Japanese yen, analysts believe that the moves in the currency are still not over, and there is more to come. This would be further driven by the U.S. jobs report to be released today.

The yen that has gone from a sharp fall to a pointed gain in a subject of few weeks, traded at its maximum level in two months against the dollar on Thursday. The reasons, which led to the overnight trouncing of USD, are still unclear. Meanwhile traders made use of this prospect by pulling back on the long dollar and short yen positions, with some risk due to the release of the U.S. payroll report that is hopeful of bearish movement for the dollar.

Dollar’s sell off suggests that traders could value the weaker release, but room for further weakness remains.

Today, the dollar traded at 96.80 yen, after falling to about 95.96 suddenly, which depicts a 7.5% move below the high in more than four years that was seen two weeks back. Overall, the dollar was over stretched and the market in the U.S. may seem bullish in the coming days, but it has just got to the fore of itself.

The slump in the yen has not just affected the dollar, but its blow to the stocks here is noticeable that pushed the same into a bear market. The Nikkei here fell by greater than 20% from its five and a half year high set last month.

Analysts speculated that the dollar/yen drift is not just linked to the weakening of the U.S. currency, but also some degree to the disappointment that the growth plan unveiled by the prime minister triggered. It is expected that the USD/JPY will stabilize somewhere around 96, stating that scope of instability that still exists.

SHARE
Previous articleEUR/USD Currency Forecast
Next article$200 Million Credit Card Scams Makes Bitcoins A Hero
Jonathan Millet is currently the proud CEO of ForexMinute.com, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it offers. He also holds the position of Binary Options Consultant at ForexMinute.com. Before ForexMinute.com was around, Jonathan was a successful Forex dealer and chief market analyst at Forexyard. He has also worked as a Forex trader. His other specialties include advising financial companies of how to stay head of the competition.
  • Jacob Nasz

    Don’t have doubts that the Japanese government will intervene when they
    will feel the pressure. Right now, the let the “free market” breath.
    Any deep drop (weekly chart) there, on all JPY pairs, is chance to buy and
    to hold for long run!!! That’s what I aim to do as well.

  • Jacob Nasz

    Really don’t have doubts that the Japanese admininstration will intrude in the event that they
    will feel the stress. Currently, allow “free market” breath.
    Every deep down reduction (weekly chart) there, on all of the JPY pairs, is an opportunity to buy and
    to hold for long run!!! That’s what I aim to do as well.