The USD has steadily moved out ahead of the Japanese yen this afternoon. The USD/JPY has hit a 3 1/2 month high and experienced flat trading at 78.49. This can be attributed to a number of factors, including recent announcements from the Bank of Japan. The BoJ recently implemented monetary easing steps which analysts have suggested may have contributed the stop-loss buying of the USD.
Also affecting the earlier rise in the USD is the ongoing economic recovery in the United States. Figures from the U.S. continue to support the fact that the recovery is slowly but surely taking hold. Japanese trade deficit may very well be an influential factor as well. As the day continues, traders will have to monitor how these factors continue to influence the strength of the USD or, conversely, the weakness of the yen.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.