Fri, 09 Mar 2012 00:00:00 +0100

Yen Remains Bearish Following Poor Japanese Fundamentals

The yen extended losses against most of its main currency rivals yesterday, as poor Japanese fundamental indicators created doubts about the currency's safe haven status. The USD/JPY turned bullish after the Japanese Current Account and Final GDP Price Index came in below expectations. The pair peaked yesterday at 81.72 before reversing during the evening session. Against the euro, the yen dropped close to 170 pips following an increase in risk taking amid positive euro-zone news. The EUR/JPY went as high as 108.34 before staging a reversal. Turning to today, the yen is likely to be heavily influenced by the US Non-Farm Payrolls figure, set to be released at 13:30 GMT. Should the figure come in below expectations, investors may begin to doubt the pace of the US economic recovery and revert back to safe-haven assets. In such a scenario, the yen would likely see gains against most of its main currency rivals.

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