Yen Approaching Important Levels

The Yen has incrementally continued to be weaker. The U.S Dollar continues to be stronger against the Yen, as risk appetite rises in Japanese equities and traders speculate on the potential of more weakness. An important resistance level is now being tested.

U.S. Dollar Being Bought Against the Yen

The U.S Dollar has continued to strengthen against the Yen in the short-term. The Japanese currency is traversing the important 114.00 resistance level as it threatens to get weaker.

The more than impressive gains made by the Nikkei Index the past few months have fueled some of the weakness in the Yen as a speculative play, but it is also understood the Bank of Japan intends on keeping the currency relatively weak.

Resistance Battle Underway

A mid-term chart shows the Yen is near the weakest points of its resistance, but speculators may continue to buy the U.S Dollar against the Yen on the belief it can reach the 115.00 level.

Recent economic data from Japan has shown a gradual improvement in Japan’s business and consumer conditions. However, the Bank of Japan is not likely to make any major changes to its monetary policy in the mid-term.

March 2017 Levels in Sight

If the Nikkei Index can continue to muster strong risk appetite and achieve higher valuations, investors may gather sentiment regarding the Yen via a long-term perspective.

The Yen has seen weaker levels this year. In March of 2017, the Yen journeyed into the 115.00 range, as the U.S Dollar was bought against the Japanese currency.

In the short term, we believe the Yen may be negative. Mid-term and Long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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