JPY strengthens slightly. Overview for 06.07.2023
The Japanese yen has paused its devaluation against the US dollar. The current USDJPY quote is 144.59.
On one hand, JPY is performing a technical pullback following its recent significant weakening. On the other hand, the reduced risk appetite in the currency market has led to increased demand for safe-haven assets. While the yen has not consistently played this role recently, it is currently demonstrating its resilience in this capacity.
In the meantime, concerns persist regarding the use of potential intervention measures by Japanese authorities, which are keeping the USDJPY below 145.00. If signals suggest that interventions are unlikely, the instrument could rise significantly.
Over the long term, the interest rate differential factor continues to influence the yen. The Bank of Japan maintains an ultra-soft monetary policy stance, which exerts downward pressure on the JPY.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
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