Softer Outlook for Japanese Yen

21 July 2016 11:03:07 AM

By: DailyForex.com

Presently, the Japanese Yen is seeing some broad volatility and is finding support. Earlier, however, the US Dollar had edged higher against the Japanese Yen and struck a 6-week peak on renewed expectations of more easing from the Bank of Japan and additional efforts in terms of economic stimulus from the Japanese government. Analysts say that at next week’s policy meeting, the consensus call is for the BOJ to weaken monetary policy even further which is weighing on the Yen. Moreover, generally improved risk sentiment has FX investors seeking higher risk assets than the Yen has been able to offer.

As reported at 11:05 am (BST) in London, the USD/JPY was trading at 105.713 Yen, down 1.385; the pair ranged from a low of 105.386 Yen to a peak of 107.494 Yen. The EUR/JPY was also lower at 116.504 Yen, down 1.32%.

ECB Policy Decision Looms

The looming European Central Bank meeting also seems to have investors somewhat wary with the EUR/USD dropping below $1.10 earlier before recovering. While there are no expectations that Draghi or the ECB will surprise markets with more easing, there is always some concern as to what lies ahead so Draghi’s press conference is likely to hold clues to the future. The EUR/USD is currently trading at $1.1021, just 0.10%; the pair’s daily trading range was $1.10 to $1.105.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.

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