The Japanese Yen Continued to trade in higher costs against the U.S. Dollar in anticipation of a summit between the Japanese Prime Minister, Shinzo Abe and U.S. President Donald Trump. Traders were worried because topics about protectionism could shake up the recent rally in Asian Stock.
This could push the safe-haven currency, JPY, in higher positions against the U.S. Dollar. The Japanese Yen continues to climb up against the USD/JPY currency trade, but JPY traders may see an important test and notable volatility out of major currencies in the days ahead.
In most cases, any unexpected political headlines can lead to major moves in the U.S. Dollar, with that being said, it will be important to watch how members of the U.S. senate and House of Representatives react to policy decision decisions from Fed Chair Yellen because it relates to the financial sector legislation.
However, there may be high- profile challenges from members of the Republican-controlled House of Representatives and the Senate. The U.S. Dollar recently spiked while the Japanese Yen Plunged because of an Executive Order from the U.S. President Donald Trump.
The E.O. indicates the current administration intends to unravel much of the regulations that is put into action, preceded by the Global Financial Crisis.
Economists expect few minor surprises from Japan’s Q4 GDP reports, which show that the country grew by 1.1 percent in the past year. So analysts will focus on recent political developments and whatever may come from The Fed Chairman Yellen’s testimony.