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27 February

By Ahmed Mamdouh

Category: FX Graph

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Why USDJPY pair weakening?

Over the past four years the dollar-yen has reported an average slide of 3.2 percent during the January-March quarter, which makes it the worst quarter for the pair.

So far, the USDJPY has tumbled 4.98 percent since the beginning of the year, where it hit its lowest level in 15 months of 105.54 in February.

Japanese investors have sold foreign debt, especially U.S. bonds as 10-year treasury yield climbed to a four-year high near 3 percent.

Japanese were net sellers of foreign bonds in each of the three weeks through February 16, data from the Ministry of Finance showed.

Minori Uchida, head of global market research at Bank of Tokyo-Mitsubishi UFJ, said investors are focusing on repatriation flows for forex moves.

As of 08:33 GMT, the U.S. dollar traded slightly higher versus the yen at 107.07, ahead of head of Federal Reserve Chairman Jerome Powell’s first congressional testimony later in the day.

Ahmed Mamdouh

Ahmed Mamdouh is the head of the English Fundamental Analysis at D1stp.com, with 9 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.