On Concern Recent Declines were Too Quick, the Yen Gains Versus Majors

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.”


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