USD/JPY: mixed post G7 summit, remains on 110. handle

By FXStreet USD/JPY has started the week mixed in Asia after the weekend’s G7 summit between finance ministers.

Japan is at odds with U.S. on currency market conditions as the moves in the Yen have been disorderly and makes for growing frustration within Japan’s government because of the impact a stronger Yen has been having on exporters after the currency rallied nine percent already this year.

This has been creating speculation that the BoJ are about to intervene and Aso was very vocal at the G7 in an attempt to jawbone the currency lower. Subsequently, there could be some weakness in the yen going forward, but the Nikkei may not like the outcome of the event either on the open today.

While Aso made Japan’s concerns very clear, no action was taken by the G7 showing that there is a lack of cooperation between nations that are unwilling to coordinate stimulus to prevent the Yen from strengthening for they are all concerned about global growth risks and the strength of their own currencies. The last time the G7 approved intervention was in 2011 to help Japan to recover after a devastating earthquake, tsunami and a nuclear meltdown.

USD/JPY levels

USD/JPY is in a tight 10 …read more

Source:: FX Street