USD/JPY up to 121.50 as Economies Diverge

The dollar rose to a seven-year high versus the yen and headed for its longest winning streak against Australia’s currency since 2011 as a strengthening U.S. labor market highlighted the gulf between the world’s largest economy and other developed nations.

The yen pared earlier losses after data showed Japan’s current account held a surplus for a fourth month in October as the nation’s net sales of long-term U.S. Treasuries climbed to the most since June 2013. The euro was little changed after sinking by the most since September last week when two European Central Bank officials said policy makers may consider broad-based asset purchases. U.S. consumer confidence due this week is forecast to rise to a seven-year high.

“We expect to see the dollar strengthen,” Ed Rogers, chief executive of Tokyo-based Rogers Investment Advisors said in an interview with Bloomberg Television today. “Dollar-yen, we’re predicting 120-135 as the range for 2015.”

Bloomberg

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