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Yen Weak, USD/JPY stronger - BBH

FXStreet (Barcelona) - Mark Chandler, Global Head of Currency Strategy at Brown Brothers Harriman views the decline in the yen having a nearly immediate effect on the yen-value of the income earned from overseas investments, and sees USD/JPY heading towards 118.

Key Quotes

“The yen is off almost 1% against the US dollar and nearly as much against the euro. The greenback poked through the JPY116 level, after having dipped barely and briefly through JPY114 yesterday. For its part, the euro has bounced from JPY142 yesterday to nearly JPY144 today.“

“Once the US dollar can establish a foothold above JPY116.00, the next target is near JPY118.00. “

“The JPY113.50-114.00 area should now provide support.”

“Given the higher volatility, the upper Bollinger Band (two standard deviations above the 20-day average), which the dollar had been bumping against last week, is now near JPY117.30.”

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