USD/JPY downside wide open below 115.50

By FXStreet USD/JPY is back down testing the 115 handle with recent dips below to 114.89 so far. The markets are able to take advantage of the price so long as it remains below 115.50/00.

Risk apatite is sidelined in this environment with the media hyping up the doom and gloom stories of a US recession, but tomorrow Yellen will likely try and sugar coat the situation and will remain ‘overoptimistic’ despite there being obvious cracks in the US economies outlook and increased risks in 2016 developing.

How strong can the Yen get?

In respect to the strength of the Yen, that will now depend on what the Japanese authorities can do to provent it appreciating too fast, because should the market want it higher, then it will go higher and there is not a great deal the authorities can do in fact.

“Finance Minister Aso said movements in markets have been rough and he will continue to watch FX market movements closely. His comments are bolder than in mid-January, as he just said he was paying attention to the FX market on 22 January,” explained analysts at Nomura.”In addition, Vice Finance Minister for International Finance Asawaka also said FX moves have been …read more

Source:: FX Street