The Japanese Yen is by far the weakest currency this morning. The deflationary Core CPI report from Friday still affects the currency, as the data points to more monetary easing by the Bank of Japan. USD/JPY is up by 0.5%, and the pair has now risen for 7 straight sessions. As long as the rally in stocks continues, and the recent decline in risk assets proves to be only a correction, the pair might rise further, but with notable resistance near 114 and then 115. The declining 200-day MA is still far away, around 119 currently.
Our assessment: The Yen has been the weakest G10 currency since testing 15-month lows near 111 two weeks ago. After the good U.S. growth release, some further gains are expected for the Dollar, compared to its Japanese counterpart.
