USD/JPY: downside risks building – BTMU

By FXStreet FXStreet (Guatemala) – In respect to USD/JPY, analysts at Bank of Tokyo Mitsubishi explained that the disappointing start to the new calendar has continued for risk assets which are experiencing their sharpest correction lower since the summer of last year.

Key Quotes:

“Even the stronger than expected US employment and Chinese trade reports have failed to provide any relief. The yen has been the primary beneficiary from the current period of heightened risk aversion resulting in USD/JPY moving closer towards the low from August of last year at 116.15.”

“The safe haven appeal of the yen is likely to keep it in demand in the week ahead as global investor risk sentiment is likely to remain fragile. Weakness in global equities, commodity prices, and the renminbi are prompting investors to downgrade their outlook for global growth. External developments will continue to dictate yen direction in the week ahead. There are no significant domestic developments scheduled for the week ahead. Downside risks for USD/JPY are building which is encouraging a further reversal of yen undervaluation.”
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Source:: FX Street