The JPY to USD exchange rate softened from yesterday’s three-week high but remains supported after the Bank of Japan suggested that it was unlikely that it would implement further monetary stimulus measures.
The Japanese currency began its upward rise on Tuesday after Bank of Japan Governor Haruhiko Kuroda said that the Asian nations economy can weather a sales tax increase without the need to implement more monetary stimulus measures to offset the impacts. Kuroda also said that he expects inflation and growth in the country will continue to rise over the coming months.
Yesterday saw the US Dollar tumble against the majority of its peers as last week’s weaker than forecast nonfarm payrolls report continued to weigh and as investors grew jittery ahead of the release of the minutes for the Federal Reserve’s March policy meeting.
Investors are nervous that a recent run of disappointing US data releases could cause the Fed to slow the pace of tapering its quantitative easing programme.
Some economists believe that the US Dollar will soon reverse its losses against the Yen and other major peers.
“We expect the US Dollar to regain its feet in the weeks ahead as improving US data puts renewed upside pressure on US yields. We closed our USD/JPY long recommendation flat on Tuesday as the pair fell through our trailing stop set at our entry level. However, we think the pair is likely to hold above the year’s lows around 100.80 and expect the March lows around 101.20 to also provide good support,” said analysts at BNP Paribas.
The Yen is likely to see movement on Thursday due to the release of employment data out of Australia and trade numbers out of China.
Japanese Yen (JPY) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
US Dollar,
,Japanese Yen,102.0100 ,
Euro,,Japanese Yen,140.7840 ,
Pound Sterling,,Japanese Yen,170.7520 ,
Australian Dollar,,Japanese Yen,95.6344 ,
[/table]
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