Japanese Yen Forecast Overview:
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The Japanese Yen continues to weaken as risk appetite has firmed on the back of US President Trump leaving the hospital and Congress moving closer towards a fiscal stimulus deal.
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The trio of EUR/JPY, GBP/JPY, or USD/JPY continue to advance towards bullish breakout territory yet; all three pairs have seen significant momentum shifts and are now challenging key resistance.
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Per the IG Client Sentiment Index, the Japanese Yen has a bearish bias.
Japanese Yen Fades as Equities Climb
The Japanese Yen has been trading on its backfoot in recent days, with down days proving inconsequential to the more sizeable advances on up days. Driven by improving risk appetite, the JPY-crosses have been drifting higher alongside global equity markets – and the latest twists and turns in the US President Trump coronavirus saga. Now that the American president is out of the hospital and Congress appears to be inching towards a new fiscal stimulus package, the near-term news flow has proven burdensome for the Japanese Yen; in turn, the big three JPY-crosses have continued to advance to now challenge critical resistance levels.
