Home » JPY » Future Currency Forecast for the Japanese Yen (JPY) – Yen slide continues after brief rally

Future Currency Forecast for the Japanese Yen (JPY) – Yen slide continues after brief rally

Japanese Yen

The Yen has weakened against the Euro due to Japanese Finance Minister Taro Aso saying that the G7 has acknowledged that Japan is not targeting the exchange rate with its policy to devalue the Yen.

Aso told reporters that the Japanese policy is aimed at combating the nation’s high level of deflation and does not have a Yen target. In response the G-7 nations confirmed their commitment to the market-determined exchange rates.

“We reaffirm that our fiscal and monetary policies have been and will remain oriented towards meeting our respective domestic objectives using domestic instruments, and that we will not target exchange rates,” the group said.

Elsewhere the currency was little affected by this morning’s nuclear bomb test by Japanese rival North Korea. The financial markets showed a relatively muted reaction to the communist nations vow to never bow to the demands of the United Nations. A nuclear test monitoring agency in Vienna said the blast was double the size of North Korea’s last test in 2009. NATO condemned the move, calling it an “irresponsible act” that posed a grave threat to world peace.

Tensions in the region remain high in part due to North Korea but also to the ongoing confrontation between Japan and China over a disputed set of islands. The Yen would normally strengthen due to the uncertainty thanks to its safe haven status but the Japanese governments devaluation plans seem to be overriding that.

The Yen is hovering close to fresh three-year lows against the Dollar and Euro.

Current JPY exchange rates

These exchange rates were correct as of 14:20 pm

The Japanese Yen to Pound Sterling exchange rate is currently trading at 0.0068

The Japanese Yen to US Dollar exchange rate is currently trading at 0.0106

The Japanese Yen to Euro exchange rate is currently trading at 0.0079

The Japanese Yen to Australian Dollar exchange rate is currently trading at 0.0104