JPY strength to be temporary – BTMU

Pablo Piovano FXStreet

Currency Analyst at BTMU Lee Hardman expects the Japanese safe haven to lose upside momentum in the next months.

Key Quotes

“The yen has stabilized overnight after deriving support from President elect Trump’s press conference which focused on more protectionist trade policies”.

“The correction higher for the yen has been fairly modest so far this year in comparison to its sharp decline recorded at the end of last year following the election victory for Donald Trump”.

“At the current juncture, we believe that the reversal of Trump reflation trades including a weaker yen is more likely to prove only temporary in the near-term”.

“It would take an incredible turn around for initial optimism to reverse so soon on a sustainable basis even before President elect Trump’s term has started. In comparison, the wave of investor optimism which greeted the introduction of Abenomics in late 2012 lasted until towards the end of 2014”.

1. R3 117.26
2. R2 116.39
3. R1 115.48
PP 114.62
1. S1 113.71
2. S2 112.84
3. S3 111.93

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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