Yen under pressure amid speculative testing – ING
|The Japanese Yen (JPY) faces continued pressure as geopolitical tensions over Taiwan and speculative trading test authorities’ tolerance, with potential Bank of Japan intervention looming during the thin Thanksgiving week, ING's FX analyst Francesco Pesole notes.
Trump-Xi call fuels Taiwan-related risk for JPY
"The standout in G10 remains the yen, which continues to face speculative testing of Japanese authorities’ tolerance. Reports that the Trump-Xi call included a discussion on Taiwan yesterday isn’t helping JPY either."
"The diplomatic rift between Japan and China concerning Taiwan persists, and markets are adding some risk premium on the yen based on the potential economic fallout of Beijing’s retaliatory measures."
"Thinner liquidity around Thanksgiving could present good conditions for the BoJ to intervene in USD/JPY, ideally after a market-driven correction in the pair."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.