Even as the Dollar is finding some support from the Federal Reserve, the Japanese Yen has been underperforming on speculation of yet another move from the Japanese government. According to analysts, the Yen is currently under somewhat heavy pressure as a result of possibly impending fiscal and monetary policy actions. Shinzo Abe, the Japanese Prime Minister is likely to delay the implementation of another sales tax increase and could call for a snap election. Meanwhile the Bank of Japan is considering more stimulus.
As reported at 11:09 am (GMT) in London, the USD/JPY was trading at 113.5705 Yen, up 10%; the pair has ranged from a session trough of 113.2290 Yen to a peak of 113.7995. The EUR/JPY is also higher at 127.2450, a gain of 0.18%, with a daily range of 126.8062 Yen to 127.28 Yen.
Friday’s Tankan Report Eyed
The Japanese economy refuses to budge from the doldrums, despite the government’s varied efforts, largely because global uncertainty has compelled investors to buy the Yen as a safe haven currency. Markets will be scrutinizing this week’s releases of the Tankan reports which most economists believe is likely to show significant deterioration in the manufacturing and industrial outlooks.