Forex: USD/JPY – Yen advances against greenback

on May 30, 2013
Listen

The USD/JPY hit session lows of 100.47 after the Nikkei dropped by more than five percent in Japanese trading today, following extreme market volatility so far this week. The yen is trading higher versus the US dollar, after yesterday’s US mortgage applications data showed an 8.8 percent decrease from the prior week.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Last week the pair traded above the 103.50 level, after bond yields spiked to a 13-month high on signals that the US Federal Reserve might taper its own debt purchases. Today, Bank of Japan Governor Haruhiko Kuroda said the BOJ would not tolerate increased volatility and that the impact of its expanded quantitative easing would grow as it purchased more government debt. He added that the economy was definitely improving and that it was normal for that reason for yields to rise, with an increase in the market risk-free rate.

Investors appear however not to have been convinced by Kuroda’s words, given that yesterday’s Retail Trade data showed continuing decline, with the YoY figure coming in at -0.1% versus previous month’s -0.3%. Large Retailers’ Sales numbers also dropped significantly, coming in at -2.3% against the previous month’s 2.5% positive.
Ahead of upcoming updates on US Q1 GDP, jobless claims and pending home sales, the yen has today broken above the 101.00 barrier, with the price currently trading at 101.66/68.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Forex