FXstreet.com (Barcelona) - Japanese yen is resuming its appreciation against the greenback on Wednesday, extending the downside in the cross since March highs above the 84.00 mark.
Analysts at Nomura comments that JPY is still one of the safest currencies and it should be sold against major currencies during a risk-on environment”. They also inform that domestic political unease could derive in further weakness for the yen and therefore a cut in the country’s credit rating will be more likely.
“In addition, if the general election is held this fall, the LDP, which advocates a higher inflation target of 2%, is likely to be the first party, increasing expectations of a more aggressive BOJ easing”.
Analysts at Nomura comments that JPY is still one of the safest currencies and it should be sold against major currencies during a risk-on environment”. They also inform that domestic political unease could derive in further weakness for the yen and therefore a cut in the country’s credit rating will be more likely.
“In addition, if the general election is held this fall, the LDP, which advocates a higher inflation target of 2%, is likely to be the first party, increasing expectations of a more aggressive BOJ easing”.
