The political events that have put in a bad light Trump have finished to give a thrust to the downside in the Usd-Jpy. During this week, the japanese yen has rallied about a point and a half percent on the greenback, closing Friday at an altitude 111,25. Yet it has been a week so tormented. Until Wednesday, there was a strong impulse for the dollar, also because the day before the governor of the BoJ – Kuroda – had made it clear that the attitude that money will always remain the same in the short-to-medium term.
The boost to the japanese Yen
By Wednesday, however, things are drastically changed. Above all , the political events that have involved Trump have ended up weighing down the dollar so strong. The pair USD/JPY has shown strong volatility by putting in great difficulty those who use thetrading. The cross then began the descent unnerved by the news that came from Washington.
What will happen now? There could be a consolidation in an area between 110 and 111,50. Only after that we will be leaving this area you can think of to look with greater certainty to the evolution of the market. Of the rest, this is not a case that many analysts have decided to stay on the sidelines in the course of the next sessions, and that given thatare ignoring this cross.
As of now, it seems that the market must decide how to evaluate everything that is going on. An important fact is the data on inflation in output next week for Japan. Your prices are the main problem that is facing the Bank of Japan. If you will show a strong resurgence, then the yen could still appreciate against the dollar because the BoJ could start to consider a change of course about the monetary stimulus.
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