JPY maintains gains against US dollar
- Last Updated on 09 February 2012
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The Japanese yen remained close to a three-month high against the US dollar throughout yesterday's trading day. The JPY's prolonged bullish trend prompted fears among traders that the Bank of Japan (BOJ) may intervene in the currency markets to limit the yen's growth. A strong yen tends to have an adverse effect on Japan's export heavy economy, and the BOJ has taken steps a number of times in the past to reduce the currency's value.
Turning to today, the USD may be able to recoup some of its recent losses against the yen, providing a batch of US news comes in at or above expectations. Both the US ADP Non-Farm Employment Change and ISM Manufacturing PMI are likely to generate heavy volatility. Traders will want to pay attention to the results of both events, as they may set the trend for the USD/JPY for the next several days.