According to analysts at State Street Bank & Trust, the increase in the USD / JPY currency pair to 112.00 this week is expected due to increased risk appetite on the part of most investors. This was facilitated by the strengthening of the US currency and the non-lowering risk appetites of market players as recorded last week.
At the end of last week, the USD/JPY pair showed an increase, rising from 109.70 to 110.90. Later, it reached the level of 110.85. According to experts, the movement of this pair will occur ranging from 109.70 to 112.15. Currently, the pair is almost in its center and the only question is whether it will move downward or upward.
Experts expect to strengthen the US dollar against the yen. Improving investor sentiment with regard to risky assets increases the likelihood of funds flowing abroad from Japanese funds, according to experts at State Street Bank & Trust.
As already noted, the USD/JPY pair may rise to 112.00 if the stock markets remain at the same levels this week. The rise will also contribute to positive data on the US labor market, stress in State Street. At the same time, the US Treasury bonds are still in high demand from foreign investors, which also helps the growth of the US currency.
The material has been provided by InstaForex Company - www.instaforex.com