Japanese yen is gaining ground today, thanks to the latest comments from Japan’s Finance Minister. Some Forex traders now believe that the recent yen weakness was overdone, and that some strength is in order. As a result, yen is gaining against many of its major counterparts.
Japanese Finance Minister Taro Aso made some comments earlier that seemed to signal that the recent drops in the yen were a bit much. Yen has been experiencing general weakness since the Bank of Japan announced an aggressive new easing program under the watch of new head Haruhiko Kuroda, and at the direction of recently-elected Prime Minister Shinzo Abe.
Perhaps, though, the weakness happened too much too fast. As Forex traders express their second thoughts, they are providing strength for the yen, sending it higher against other major currencies, including the dollar, euro, and pound.
Even though the yen is showing strength now, though, there are questions about the forecast for the yen. As easing continues in Japan, and as the monetary base grows, there is a good chance that more weakness will be seen.
At 15:28 GMT USD/JPY is down to 99.0270 from the open at 99.3305. EUR/JPY is down to 129.5430 from the open at 129.8890. GBP/JPY is down to 153.0395 from the open at 154.3200.
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