JPY & AUD – Bank Of Japan Proving Weak

Asian bourses continued to struggle mirroring their global counterparts as negative sentiment held sway. The JPY continues to foster gains versus the USD in what has become an ever increasing risk adverse move. The JPY finds itself at highs against the greenback and Japanese export companies will suffer if this continues. The BoJ has failed to convince market participants thus far that it has the ability to provide any type of policy which would stop the JPY from gaining strength. The AUD also is struggling as the results from its election this past weekend offer little in the way of clarity. It appears that the Australian government may be gridlocked for the next week and the uncertainty will allow for a test of the AUD.

Written by