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Safe-haven yen remains attractive
Forex
01/14/2019

Safe-haven yen remains attractive

A fresh flurry of bearish news renewed safe-haven demand at the start of a new trading week, with the Japanese yen is back on the offensive after two days of a limited correction.

A fresh flurry of bearish news renewed safe-haven demand at the start of a new trading week, with the Japanese yen is back on the offensive after two days of a limited correction. USDJPY failed to break above 109.00 last week and now threatens the 108.00 figure again on Monday.
In another sign that US-China trade war hurts the global economy, the huge China’s export industry entered the negative territory in December. In particular, exports fell by more than 4%, which is the biggest decline in two years. Such a disappointing number reignited concerns over the health of the second-world’s largest economy and fuelled demand for such save assets as the yen and gold.
The news that the New-York based Viacom is in talks to sell majority stake in China business added to the negative pressure on riskier assets. It is reported that the company has had talks about a sale with at least one Chinese entity.
Add to this the uncertainty over Brexit, the longest US government shutdown in history, a other signs of slowing global growth, and the Japanese yen still looks attractive for buying. In the medium term, the USDJPY pair may challenge the March 2018 lows below the 105.00 figure registered in late-December.  

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