The pair is likely to trade with a firm undertone today in Asia after the ministers and central bankers from the Group of 20 did not single out Japan as a currency manipulator. The G20 finance ministers and central bankers said in a statement that the nations should “refrain from competitive devaluation,” while pledging not “to target our exchange rates for competitive purposes” Investors will also focus on news concerning the government’s selection of new BOJ chief for implications for the monetary policy management and the FX market. Short-term players will also wait for the release Wednesday of Japan’s trade statistics for implications for the FX market. Japan is expected to have incurred trade deficit of Y1.343 trillion in January, the seventh straight shortfalls and a second largest deficit on record. Short-term players will focus on whether the dollar would break through the mid-94 level after having failed to do so in the latest two attempts, forming a typical “double top” pattern. The dollar reached Y94.46 on Feb. 11 and Y94.41 on Feb. 12. On Friday, the rate moved from Y92.23 to Y93.84.
EasyForexNews Research Team