Analysts at Westpac Global Markets expect that Japanese yen that has so far significantly appreciated versus the greenback will lose its strength. The specialists name several reasons for such forecast.

Firstly, Japanese economic recovery was worse than in other countries. More financial products are available to Japanese households via the internet and the country’s investors increase demand for higher-yielding foreign assets and go to offshore markets. In such environment yen’s poised to decline, says Westpac.

Secondly, global financial markets appear to be less stressed and the markets’ risk sentiment improves reducing the volume of yen purchases as the safe haven.

As a result, Westpac strategists believe that there are enough reasons to sell Japanese currency.



Chart. Daily USD/JPY

More info about FBS