USD/JPY Makes Fresh Trend Lows, No Signs of BOJ Intervention
has made a marginal fresh trend low at 107.63 in Asia, with focus now
fully shifted towards a potential imminent break of 107.50 mid round
number, with specs long Yen continuing to capitalize on the weakness in
the Nikkei 225, currently down by 1.35%.
Risk aversion in Asia
Ever since breaking through the key psychological support at the 110 handle, as Ned Rumpeltin, European Head of Currency Strategy at TD Securities notes, "the balance of risk is skewed to the downside." The current rise in Gold prices and drop in US 30-year Treasuries is helping feed the risk-off environment and the Yen trend.
No evidence BOJ willing to conduct intervention
Ned adds: "Concerns over intervention risk may grow, but we think this is politically very difficult to do ahead of the G7 meeting held in Japan next month. We do not think 110 represents a major line in the sand for the BoJ. From our perspective, the recent appreciation in JPY is not disorderly enough to instigate currency intervention."
(Market News Provided by FXstreet)