Japanese Yen: Oil shock weighs JPY against US Dollar – Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret highlight renewed weakness in the Japanese Yen (JPY), which is underperforming G10 peers and threatening fresh multi-decade lows as USD/JPY trades at levels last seen in 1986. They stress that surging Oil prices are a clear downside risk via Japan’s terms of trade, while the chart offers little guidance on resistance after the recent powerful rally.
Multi-decade highs and downside risks
"The yen is soft, down 0.2% vs. the USD and underperforming most of the G10 currencies into Wednesday’s NA session."
"The renewed weakness is worrisome following last week’s failed recovery and the yen looks to be threatening a break to fresh multi-decade lows."
"The latest resurgence in geopolitical tensions presents a clear downside risk for the yen, as surging oil prices deliver a crushing blow to Japan’s terms of trade."
"The USD/JPY chart offers little clarity in terms of framing major resistance levels, given that the recent rally has delivered a push to fresh multi-decade highs reached levels last seen in 1986."
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