Japanese Yen Slowly Retreats as EURJPY Posts 7th Straight Advance The Japanese yen has enjoyed the trappings of a quiet FX market. With the FX Volatility Index retreating to 10.2 percent – a six-week low and 15 percent pullback from June’s peak – the market isn’t as concerned about a flippant shaking the low-yielding carry trades apart. Instead, the focus can return to the consistent pressure being applied by the Bank of Japan – money base expansion that fends off deflation and depresses the value of the local currency. This consistency has proven particularly rewarding for EURJPY which has advanced for seven-consecutive trading days – the longest stretch since December 20. Yet, for those that are looking for consistency, caution is warranted. With elections for the Upper House of Parliament due Sunday and big promises by Prime Minister Abe, investors will approach with restraint.
Posted on: Fri, 19 Jul 2013 09:16:10 +0000
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