The Japanese yen started the trading week higher versus other most-traded currencies but has reversed its movement afterward and is currently trading far below the opening level against basically all other major rivals. Market analysts explained the moves by the improving market sentiment, though, in the longer-term, the outlook remains favorable to the currency.
Safe-haven currencies, like the US dollar and the Japanese yen, were on the defensive today, retreating against its rivals. But experts doubt that investors will retain their positive mood for a long time. With the number of coronavirus cases surging in the United States and other parts of the world, speculators will likely prefer to play it safe and avoid riskier options. And the yen usually thrives in such an environment.
As for domestic macroeconomic data released today, it was not good. Japan’s Ministry of Economy, Trade, and Industry reported that retail sales tumbled by 12.3% in May, year-on-year. While the reading was better than the negatively revised drop of 13.9% registered in April (13.7% before the revision), it was worse than the median forecast of 11.6%.
USD/JPY GMT rose from 107.06 to 107.72 as of 16:00 GMT today. EUR/JPY climbed from 119.97 to 121.02. AUD/JPY gained from 73.44 to 73.79.
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