USDJPY Technical Update – Weekly Chart Analysis – Currency Correlations

• The Japanese Yen was the best performing currency this past week as it  gained almost  4.7% versus the weakest currency – the New Zealand dollar – which has seen downside pressure along with other commodity currencies like the CAD.   See the currency correlation chart below which has the JPY as the strongest on D1 and H4 and the NZD as the weakest.
• This Yen strength scenario could potentially see additional action from the BOJ (Bank of Japan) who may use the upcoming monetary policy meeting as an opportunity to to warn market speculators that they will act if required to do so.  The safe haven appeal of the Yen has the currency in demand as concerns grow around a potential disorderly Greek default and EMU exit, the JPY can accommodate the required liquidity demands and this has the Yen under threat of further intervention from the BoJ.