More fall ahead?
USD/JPY remains under intense selling pressure to trades near 149.50 in Friday's Asian trading. Despite dismal Tokyo CPI and Japan's Retail Trade data, the Japanese Yen stands resilient due to risk aversion. The US Treasury bond yields sell-off weighs heavily on the pair ahead of US PCE data.
In the past, weakness in the Japanese currency has been attributed to the difference between the U.S. and Japanese interest rates as lower rates tend to pressure currencies, while higher rates lift them up. Japan had negative rates for about eight years, keeping it's currency weak compared to the dollar.
Thus, USD/JPY is positively correlated with oil. The pair will usually rise when oil prices are rising and fall when oil prices are falling. Demographic factors, such as Japan's aging population, and the geopolitical rise of China and other East Asian competitors may be underlying, non-economic factors. Researchers have produced papers delineating possible reasons why the Japanese economy sank into prolonged stagnation.
In the past, weakness in the Japanese currency has been attributed to the difference between the U.S. and Japanese interest rates as lower rates tend to pressure currencies, while higher rates lift them up. Japan had negative rates for about eight years, keeping it's currency weak compared to the dollar.
Thus, USD/JPY is positively correlated with oil. The pair will usually rise when oil prices are rising and fall when oil prices are falling. Demographic factors, such as Japan's aging population, and the geopolitical rise of China and other East Asian competitors may be underlying, non-economic factors. Researchers have produced papers delineating possible reasons why the Japanese economy sank into prolonged stagnation.
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Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.