The yen was among the big winners yesterday thanks to good data on the growth in the average pay of Japan and the growing concern of investors about the global economic slowdown. Christine Lagarde said in a statement that the world economic picture has worsened over the past six months and called for stronger measures. The pair USD/JPY fell to 110.33, and GBP/JPY is down to 156.20. US data showed that the ISM index of services in the US reported growth last month to 54.2 points, while the trade deficit increased to 47.06 bln dollars.
On Tuesday USD/JPY hit its maximum value since November 2014 and, of course, the financial authorities in the Land of the Rising Sun will hardly accept quietly this turn of events. We have already seen some comments in this regard, but they will hardly be able to substantially change current trends.
According to strategists at BNP Paribas, USD/JPY is likely to continue its downward movement, reaching 108.00 at the end of the second quarter.
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