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What's going on with the yen?
The Japanese yen has been strengthening against the dollar and the euro. Saxo Bank's Head of FX Strategy, John Hardy, says we're now in a very supportive environment for the yen given the great deal of uncertainty in emerging markets, falling bond yields and fears about how much the US Federal Reserve will taper its bond buying programme.
John considers the interesting technical breaks we're seeing and points to key levels in the future. He says that in the very long term, he sees the Japanese yen weakening for structural reasons within the economy. But he says in the short term, this yen strength could well continue unless the Bank of Japan comes out next week with something "drastic and new". A bigger test may come later in September after the next meeting of the FOMC.
01:32 minutes
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