JPY Daily News

Japanese Yen May Weaken as U.S. Markets Rebound from Stimulus

The Japanese Yen has seen some signs of a small reversal against last week's downtrend against the USD. Ending trading on Friday at 91.81 against the Dollar, the JPY now trades near the 91.60 price level. With such poor employment data emanating from the U.S. on Friday, most investors were speculating that the U.S. government would take hasty steps to pass the economic stimulus bill proposed by President Obama. The bill is expected to pass during Tuesday's vote.

Adding to this is the prediction that Treasury Secretary Timothy Geithner is going to announce a bank consolidation plan aimed at controlling toxic mortgages on the balance sheets of many banks. These moves together will likely boost confidence in the U.S. markets and will help drive the USD higher versus the Japanese currency. The Yen has been the primary beneficiary of the recent financial crisis and recession as its currency is programmed to operate counter to the economic cycles. As the U.S. markets rebound, traders are likely to see a depreciation of the Yen versus its major currency pairs.

Current Time: 05/27 02:13 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
02/09
	05:00	JPY	Economy Watchers Sentiment		15.9	13.3	17.1
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