The Yen is back to its highs. Overview for 04.04.2017

The USD/JPY pair is moving back to its March’s lows; the market is interested in “safe” assets.

On Tuesday, the Japanese Yen continues growing against the USD. The current quote for the instrument is 110.36.

Investors are taking interest in “safe haven” assets. On the one hand, there are misgivings about the perspectivity of Donald Trump’s policy, which decrease the demand for the USD. On the other hand, the market is speculating about possible complications in geopolitical relations in the world after the terrorist attack in Saint Petersburgh.

Japan didn’t publish its own statistics today, but Haruhiko Kuroda, the Governor of the BoJ, delivered a speech. He said that the time to discuss the QE program closing hadn’t come yet. The regulator may have other options, but it wasn’t going to discuss them. Once again, the BoJ drew attention to the fact that the asset purchase program, which stimulated the Japanese economy, boosted the inflation as well. Without the QE, the deflation was increasing.

Indeed, the market has been speculating for several weeks that instead of buying ETFs the BoJ might make more conservative purchases. In this case, the regulator would save money, because everyone knows that the Japanese QE is one of the most expensive programs.

RoboForex Analytical Department