Yen Struggles for Traction | DailyForex

Yen strugglesThe Japanese Yen continues to flirt with a 6-week trough against the US Dollar as hopeful indications that China and the U.S. were moving closer to an agreement over their long-running trade dispute. That news helped to whittle away demand for the Japanese Yen, though it failed to provide a sustainable lift for higher risk currencies. Analysts say that they remain, at least in the short term, guardedly optimistic that a resolution will soon be found.

The USD/JPY was trading higher 108.2210 Yen at 10:18 am in Tokyo, moving off the earlier peak of 108.240 Yen. Risk-based currencies such as the Aussie Dollar also gained some traction with the AUD/USD trading at $0.6868, up 0.365% while the NZD/USD was lower at $0.6404, down 0.0265%.

Central Bank Policy Meetings in Focus

What could change the momentum for safe haven currenciess, however, is the policy decisions of the Federal Reserve Bank and the Bank of Japan. The Fed is expected to lower its benchmark lending rate at its next policy meeting. On Thursday, the European Central bank surprised markets with unexpectedly aggressive stimulus plans which, some currency strategists say, could compel the Bank of Japan to act similarly at next week’s meeting.

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