The yen rose against a majority of its major peers as technical indicators signaled the pace of recent declines has been too quick.
Japan’s currency advanced against the greenback after completing on Feb. 1 a record 12 straight weeks of declines triggered by speculation the Bank of Japan (8301) will boost monetary stimulus. The euro maintained four days of gains versus the dollar before a report predicted to show investor confidence improved in the region.
The yen “can’t keep weakening at the same speed, so it’s natural to see a correction in the currency,” said Daisaku Ueno, a senior foreign-exchange and fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo. “The yen weakness story remains on expectations that the BOJ will keep its accommodative stance for a long time.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.