Forex Signal: USD/JPY Faces Heavy Downside

The US dollar continues to face substantial downside relative to the Japanese yen, as the pair continues to track the perceived health of the global economy. The yen tends to strengthen against its major counterparts as the perceived health of the economy deteriorates in the eyes of global investors. Ahead of Fed Reserve Chairman Ben… Continue Reading

Merrill Lynch: USD/JPY to Test 14-Year Low

The US dollar may trade at a 14-year low against the Japanese yen, as diverging monetary policies between the Federal Reserve and the Bank of Japan take hold, according to Bank of America Merrill Lynch. The Fed may take additional easing steps in its monetary policy decisions, owing to a US economy that has, in… Continue Reading

BNP Paribas: USD/JPY Heading to 84.95

The US dollar may trade at an eight-month low against the Japanese yen, as concerns of a faltering US economy mount, according to BNP Paribas. Hans-Guenter Redeker, head of global currency strategy at the firm, notes that Japan has been pulling money out of the Treasury market at the fastest pace in two years, as… Continue Reading

Risk Aversion Evident Across Markets; Euro Slumps

Investors remain extremely skeptical as to the health of the global economy, pushing Government bond yields to record lows and the euro below $1.23. Government bonds, led by US Treasuries, have enjoyed a stellar first half of 2010, with gains accelerating in recent sessions. Investors continue to pile into safe haven securities, pushing yields on… Continue Reading

WSJ: Japan Frustrated by Firm Yen

The Wall Street Journal reports that Japan’s new government remains frustrated by an ever strengthening Yen: Japan’s stubbornly strong currency is becoming a source of frustration for the country’s new administration, and a source of confusion for many traders. Prime Minister Yukio Hatoyama tried to weaken the yen Friday through the unusual step of talking… Continue Reading