USD/JPY (current price: 102.15)
The Japanese Yen was among the biggest losers of the Wall Street session on Friday as the safe haven currency got sharply lower following the words of Janet Yellen. Japanese Core CPI came in lower than expected, deep in deflationary territory in early trading, and that put further pressure on the safe-haven currency. The pair continues to hold above the key 100 level, and Friday’s developments might trigger a stronger correction to the upside, especially if global stock markets remain bullish.
Our assessment: USD/JPY has been trending lower for more than a year now, and the long-term trend is still intact, but a meaningful correction might be in the cards in the coming weeks.
