It’s not often you have a Japanese official talking about the yen being too weak, but we did overnight, something which put pay to the up-move in USDJPY. Finance Minister Aso said the recent decline had been too fast, which lead to USDJPY reversing from the 118.98 high. The move has been a combination of the continued underlying weakening dynamics in the wake of the BoJ’s move last month, together with the greater uncertainty and policy deadlock caused by the PM’s decision to call a snap election. It could well be that USDJPY needs a period of consolidation after these comments before making an attempt on 120, but in the bigger picture the momentum towards this level look fairly unstoppable. The dollar itself has also been more consolidative through most of November, the dollar index holding just below the 88.00 level. The euro has been the main factor in this steadier tone, trapped in the 1.24 to 1.26 range for most of November. The ability of the ECB to instigate fresh currency weakness looks limited at this point in time and the Swiss upcoming vote on gold has also provided some support as polls have moved away from a yes vote, reducing the likelihood of the SNB being forced to sell euro’s to buy gold. For today, the data calendar is relatively light, so in theory at least we look set for a relatively smooth ride into the weekend. Inflation data in Canada is the main risk to this view, headline inflation seen rising slightly to 2.1%. USDCAD remains just shy of the recent high at 1.1467, but it would take a much weaker than expected figure to push the market back above 1.14 (currently just above 1.13). Further reading: Dovish Draghi sends EUR/USD below 1.25 EUR/USD: Consolidating Before Next Leg Lower; Outlook & Forecast – Danske FxPro - Forex Broker FxPro - Forex Broker Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss. View All Post By FxPro - Forex Broker Daily Look share Read Next Dovish Draghi sends EUR/USD below 1.25 Yohay Elam 7 years It's not often you have a Japanese official talking about the yen being too weak, but we did overnight, something which put pay to the up-move in USDJPY. Finance Minister Aso said the recent decline had been too fast, which lead to USDJPY reversing from the 118.98 high. The move has been a combination of the continued underlying weakening dynamics in the wake of the BoJ's move last month, together with the greater uncertainty and policy deadlock caused by the PM's decision to call a snap election. It could well be that USDJPY needs a period of consolidation after these… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.