The yen is weakening further.
In the first hour of Israeli action again Iran on Friday the yen jumped higher but since then its been almost one-way traffic lower.
USD/JPY did track sideways ofr much of the US session Friday but its jumped out of that range now. Higher oil prices are not a bullish factor for yen, with Japan a substantial importer of energy. Higher US Treasury yields also weighing on it.
The Bank of Japan meet today and tomorrow and are expected to leave rates on hold. Eyes will be on JGB buying plans:
- BOJ officials expect the benchmark interest rate left at 0.5%
- BOJ now expected to keep interest rates unchanged through to year-end – survey
- BOJ expected to hold rates, slow pace of bond tapering amid market strain
Earlier I reported on futures moves:
Much of the moves retracing now. ES, NQ more or less flat and oil have pulled back much of its gap higher open.
This article was written by Eamonn Sheridan at www.forexlive.com.
