Yen is near new lows. Overview for 14.06.2022.

14.06.2022

The Japanese yen against the US dollar has put falling on a pause, but this is temporary. The current quote is 134.66.

Thus, the devaluation of the Japanese yen is going on with no hints of pausing. This year, the JPY is falling fast and decisively. The key trigger is the lagging of the monetary policy carried out by the Bank of Japan from that of the Fed, ECB, and others. The BoJ is literally the only CB among developed economies that remains ultra soft. Among other things, this applies pressure to the national currency.

The Japanese minister of finance on Tuesday noted that worries about the circumstances around the national currency were only growing. The authorities are ready to apply some control on the yen if necessary. However, the verbal intervention made no impression on the currency market.

Statistics issued today demonstrated that production in April in Japan dropped by 4.9% y/y, which turned out worse than the expected -4.8% y/y. Producers seem to have no confidence that they will be able to sell their produce with all the global inflation and supply issues.

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.