Japanese Yen- Strong Momentum yet

USD/JPY 4-hour chart, source: forexfactoy.com

Japanese Yen(JPY) is classified as the safety asset with US Dollar. The economic uncertainty uses to lead JPY and USD to higher value in the financial market. But where does JPY go if Japanese economic situation itself is under the uncertainty?

Japan's leaders have tried the weak JPY to stimulate the its economy for years. Abe, Japanese premier intervened the fx market speaking the weak JPY, and Kuroda, governor of Bank of Japan(BOJ) decided the index rate into minus.

But their desire was not accepted by the market player, it has flied high.

Japanese economic situation is under the depression, too. Its fiscal sustainability faces the going worse and it is the burden of economy and government finance. Abe's cabinet guesses the increase of the consumption tax to solve the fiscal sustainability problem and the risk of shrink in the national credit grade.

Japan's credit grade ranked AAA, the highest class till late 1990s, but it has gradually step down and it ranks at A1(Mudis and S&P) or A2(Pitch) now. Its ranking is under the that of China and Korea.

In this week USD/JPY goes high and JPY's value is weaken. It rose 108.98 from 105.45 since May 3. USD/JPY steps back for the adjustment. It's not uncertain it makes the double-tops pattern or rise again after the adjustment yet in the 4-hour chart. But in the daily chart it has lowered the tops since this year and made the downward trend.

USD/JPY rises in short term and it turns its direction again, I think.

USD/JPY daily chart, source: forexfactoy.com