Saturday, February 10, 2007

Forex News: Yen Remains Weak

The yen remains weak against other major currencies on Friday as no specific talks about foreign exchange have been made at G7 meeting up till now.

As US treasury secretary Henry Paulson clarified his view on the Japanese yen, market expectations for a G7 consensus on yen weakness are dampened. Japan and US indicated that the yen will not be the focus of the G7 meeting. Only European countries keep calling for a stronger yen. We do not expect G7 statement will mention yen weakness. However, any surprise from the meeting will cause a movement in the market, therefore investors keep cautious over the weekend.

USDJPY encounters interim resistance at 121.80, backed by 122 and 122.30. Subsequent ceilings will emerge at 122.50, followed by 122.70. On the downside, support begins at 121.50 and 121.30, followed by 121. Additional floors are eyed at 120.50, backed by and 120.


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