The Yen got stabilized. Overview for 25.04.2017

The USD/JPY pair moved away from its multi-months’ lows, but investors’ interest to the Yen as the “safe haven” currency may yet return.

The demand for the “safe haven” assets is slowly decreasing as the market is getting rid of risks. Right now, hardly anything is worrying investors significantly, but the demand for the Yen may return in the days ahead if the market needs the “safe haven” currency again. The current quote for the USD/JPY pair is 110.49.

In the middle of the week, the USA is going to present its taxation reform strategy. So much was told about it, that the market is tired of waiting. And if investors find any risks for the USA and its economy in the strategy, the demand for the “safe haven” assets will return.

However, everything is pretty quiet so far. Today afternoon, Kikuo Iwata, the BoJ’s Deputy Governor, spoke and brought up the topic of preparation for reducing the QE program. The regulator isn’t ready to discuss the strategy in public yet, because it might provoke some unnecessary fluctuations on the currency market. However, the Bank of Japan is already laying the groundwork.

On April 26^th, the two-day meeting of the BoJ will start. No one is expecting any breakthroughs, because the current monetary policy is likely to remain intact. The BoJ may change something in its policy, but not earlier than in the middle of the third quarter of 2017.

RoboForex Analytical Department