𝗛𝗮𝘀 𝗝𝗣𝗬 𝗙𝗼𝘂𝗻𝗱 𝘁𝗵𝗲 𝗕𝗼𝘁𝘁𝗼𝗺?
The current situation in the economy is notable not only for world-changing events happening, but also for unusual reaction of different assets to the news. One of them is the Japanese yen. The currency that traders recognized as a safe-haven asset plunged to the lows of 2015 against the US dollar. On Monday, USDJPY tested the high of 125. The reason behind such weak performance of the Japanese yen lies in Bank of Japan’s actions to contain rising bond yields. While the US Treasury yields keep soaring, the BOJ offered to buy an unlimited amount of government bonds for the first days of this week. This move softened the JPY against the USD. Given the overbought conditions of the pair, a correction towards 120 seems very likely. On the other hand, 125 remains an important milestone.
