JPY continues to strengthen – Danske Bank

Valtteri Ahti, chief strategist at Danske Bank, points out that the JPY has continued to strengthen on the back of weak risk appetite and on Monday, 31 December the USD/JPY broke below 110 for the first time since August 2018.

Key Quotes

“Year-end short covering may have boosted JPY support ahead of New Year, and while risk sentiment is likely to remain the key driver for the USD/JPY, the cross could gain support near term if new JPY shorts are established when investors return from their holidays.”