On Monday morning, USDJPY is back to falling; investors are still interested in “safe haven” assets.
The Japanese Yen continues getting more expensive against the USD. The current quote for the instrument is 108.62.
Last week, the USD lost 1.3% against the Yen and may probably continue weakening during this week. Right now, the demand for “safe haven” assets is rather limited, but there is a possibility that it may increase significantly in the next several days.
The major piece of news, which influences the Yen most of all right now, is the decision of the Japanese government to keep Haruhiko Kuroda as the Bank of Japan Governor for the second term. It means that the basic parameters of the Japanese regulator’s monetary policy will remain pretty much the same. Kuroda is one of the most significant front-line players, so the QE program in Japan will continue as long as he remains the BoJ’s leader.
On one hand, the QE program and the BoJ’s activities to increase the inflation will bear additional pressure on the Yen. On the other hand, keeping the basic parameters of the monetary policy unchanged is very positive, because it will help the country’s economy to avoid any significant changes.
The Yen will continue being in demand until global capital markets reach stability.
RoboForex Analytical Department