The Japanese Yen has rallied against the majority of its most traded peers, rising from its lowest level in more than four years against the US Dollar after technical indicators showed that the Asian currencies decline was too fast.
Yesterday saw the Yen drop to its weakest level since October 2008 against the ‘Greenback’ after the US economy continued to show signs that it is making a strong recovery. Retail sales shot up, taking economists by surprise and pushing demand for the Dollar higher.
The Yen’s reversal in fortune came after the Yen’s relative strength index (RSI) against the US Dollar dropped below the 30 level that indicates that an assets price has dropped too rapidly and that it could be poised to reverse direction. Against the Euro the Yen’s RSI stands at 33.
“The sheer scale of the Yen move has given the impression that it’s a one-way bet, and in currency markets there aren’t any one-way bets,” said Sean Callow, a senior currency strategist at Westpac Banking corp. in Sydney. “The arguments for buying the US Dollar on the notion of the Fed tapering off QE any time soon are quite thin,” he said, referring to the Federal Reserve’s program of so-called quantitative easing.
So far this year the New Zealand Dollar has surged by 17% this year alone and the US Dollar has surge by 24%.
Current Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 101.4433
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 155.2101
The Euro/Japanese Yen Exchange Rate is currently in the region of: 131.8664
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 84.0232
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 101.1085
(Correct as of 09:30am GMT)
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