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Yen Gains on Comments of Japan Finance Minister Aso

Posted by Chris Advincula on Jun 7, 2013 7:42:00 AM

June 7 Friday 11:45 GMT

The Japanese Yen made substantial extended gains in Europe for a second day with Dollar Yen declining by  196 points to 95.27 from 97.23 on a supposedly quiet session prior to the release of the U.S. Employment data at 12:30 GMT. Euro-yen on the other hand fell 253 points to 126.25 from 128.78.

Japan’s government officials expressed seemingly less concern over the spike of the Japanese Yen as it n surged 2.2 percent against the major currencies. The rate went lower to 95.50 against the dollar, as market participants took advantage of the less hawkish comments from the Japanese Finance Minister who opened the prospect of no market intervention by the Bank of Japan to subdue the yen’s gains.

Japan’s Finance Minister Taro Aso said that “We are carefully watching the market, but we don’t have any immediate intention of taking any action, such as intervention.” Market analysts have said that his calm comments show solid policy options down the road, quite contrary to the aggressive reflationary policies of Minister Shinzo Abe.

Market focus shifts to the Bank of Japan meeting on June 10-11. 

 

Chris Advincula

WorldWideMarkets

 

YEN.6.7 resized 600

 

EUR.JPY.6.7 resized 600

Charts: FXTrek.com

 

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