Can USD/JPY get to 110.00?

By FXStreet USD/JPY is currently being held up at critical support, and likely last defense for the 110.00 level, given the markets appetite. The low this year so far has been 110.97.

USD/JPY has been on the offer for the best part of 2016, with the Yen as the top performer below 121 vs the greenback. While markets are lacking risk sentiment, the Yen will remain in favor as both a funding currency and safe haven.

“Ideally a safe haven currency would be liquid and be associated with both a current account and budget surplus in addition to trustworthy and credible systems of government, law and monetary policy,” explained analysts at Rabobank. the Yen gets a tick on that.

But as the Yen continues to strengthen, investors, and the Japanese authorities for that matter, are getting concerned of the negative ramifications and intervention could be on the cards, especially should 110.00 become a reality and scored in such a short period of time, not allowing for an adjustment.

Meanwhile, the greenback is also performing better of late, just not so well vs the yen. With the forthcoming EU referendum on 23rd June, the EZ will be under the spotlight and the greenback …read more

Source:: FX Street