The Japanese yen to US dollar has had a relatively stable and predictable behavior for the past few months, not straying far from its current moving average. At the moment the pair is on the rise but is unlikely to reach its resistance level anytime soon. On the other hand the Japanese economy has been dealing somewhat better than the United States has with the outbreak of Covid-19 and the news about the nomination of Kenji Okamura as the new Vise Finance Minister for International Affairs has bolstered faith in the yen, thus projections next week could see a reflection of this on the market.
After rebounding from the sharp drop in the beginning of June, the Japanese yen to Euro pair has been going gradually inching back down towards its support level. As the yen seems to struggle against the Euro, today we are seeing another reversal in trajectory, although this fits within the pattern of the last month and is expected to change direction again and continue to decline. Despite this, experts have expressed their doubt that the pair will reach its support level set at the beginning of June.
Japan has announced its intention to decrease financial support to overseas coal-fired power plants after receiving backlash on their investment in the non-environmentally friendly fuel source, as a result, the yen has received some pessimistic/bearish sentiment from traders. This has only reaffirmed the course of the Japanese yen to Great British pound pair, which has been going down for the most part of the month. Experts say that this trajectory will gradually bring the pair to its support level at which point, bears will have a chance to push it below and capitalize on the opportunity.