JPY fell as Russian concerns over Ukraine worried the Japanese market. In the short term USD is being seen stronger versus JPY. The market is right now highly risk averse.
Moreover the market is bracing itself for ugly Japanese GDP figures. Bad GDP figures are going to make JPY depreciate more meaning USD/JPY can see new highs.
With bad economic figures for the second quarter, focus of the market will shift toward the third quarter with the market trying to figure out whether this current account deficit is short term or long term. Some analyst have started saying that Japan is no longer competitive. On the other hand, US economic data in the last few months has been very good and indicates a strong economic recovery. US trade deficit is also on the decline due to the reduction in oil and gas imports as US domestic production of oil and gas has increased. All this points towards USD getting strong. A strong USD and a weak JPY can be a very good trade opportunity.
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