JPY: Risk Of Further Weakness N-Term – BTMU

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Dollar/yen is flirting with the highs, topping 112. Will it continue further to the upside? The team at BTMU weighs in:

Here is their view, courtesy of eFXnews:

BTMU FX Strategy Research argues that while the JPY has weakened modestly, there must be a risk of greater underperformance over the coming days and weeks if these market conditions persist.

“After a period of heavy repatriation of foreign securities investment by Japanese investors that flow has started to reverse again. In the first four months of 2017, Japanese investors sold JPY 7,938bn worth of foreign bonds but weekly data in May and June to the week ending 16th shows Japanese investors have bought JPY 4,976bn,” BTMU adds.

Low volatility and generally favourable market conditions may entice a greater portion of un-hedged purchases, helping to weaken the yen,” BTMU argues.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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