The yen is set to snap this month’s advance against its Group of 10 peers, trading patterns suggest, amid speculation the Bank of Japan will have to expand monetary easing to ensure it meets an inflation target.
Technical indicators approached overbought levels as the yen tested 200-day moving averages against the euro and U.S. and Australian dollars. Citigroup Inc. said the Japanese currency’s failure to push beyond its moving average versus the greenback signals a decline, while Commonwealth Bank of Australia projected a drop against the Aussie.
“The yen is getting stretched,” Joseph Capurso, a Sydney-based currency strategist at CBA, said by phone yesterday. “Japan’s probably got the weakest fundamentals, at least when it comes to how it affects the yen. I think there’s more upside to dollar-yen and euro-yen, as well as Aussie-yen.”
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015