JPY advancing streak has been stopped - BBH

Research Team at BBH, suggests that the surging yen has been the main feature in the foreign exchange market in recent days, but its advancing streak has been stopped with today's setback.

Key Quotes

“The greenback briefly dipped below JPY107.70 in North America yesterday but has not been below JPY108 today. It is near JPY109 as NY dealers return to their posts.

Japanese officials may have ratcheted up their rhetoric a notch, but ultimately it simply seems that yen buying dried up. Either the demand at the beginning of the fiscal year has been met, or the sharp yen rise encouraged buyers to pull back. The dollar's upticks look corrective in nature, and it remains well within yesterday's range. We peg initial resistance in the JPY109.30 area.”