At long last, investors have finally seen the USD/JPY pair break through the elusive 100 level and edge even higher towards 101. Currency analysts believe that the recent signs of improvement for U.S. labor, coupled with the Federal Reserve Bank’s promise to begin curtailing its asset purchase program, has helped to restore investors’ confidence in the U.S. economic recovery. The Bank of Japan’s ongoing commitment to end deflation via additional easing has also put significant pressure on the Yen and encouraged investors to seek out higher yielding currencies.
As reported at 9:55 a.m. (JST) in Tokyo, the USD/JPY pair was trading at 100.98 Japanese Yen on the EBS platform, and currency strategists see the next major level to be struck at 103 Yen with 105 Yen just beyond. One analyst believes that, given the Bank of Japan’s inflation target of 2%, 104.5 Yen to 105.0 Yen level sounds appropriate in the near term. Though the Euro has been under some broad pressure following the ECB’s promise of additional easing, the EUR/JPY pair nonetheless edged higher, to trade at 131.71 Yen, a gain of 0.4% altogether but moving away from the earlier struck 131.91 Yen high, a 3-year peak.
After 100.0 Break It’s Full Steam Ahead for USD/JPY
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.
... Read more After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.