Yen Is Breaking Down Barriers Toward 100 Threshold
- Yen has gained more than 4% versus dollar in past two months
- Leveraged funds swung to a net long yen position in June
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The barriers preventing the yen from reaching 100 per dollar, a target that has proved elusive for the past two years, are dropping one by one.
An escalation of the U.S.-China trade war took the haven asset through 110 in mid May. Next to go was resistance at 108.50, which crumbled late last month when President Donald Trump threatened to put a 5% duty on Mexican imports. The threshold of 105 now looks vulnerable as U.S.-Iran tensions worsen and investors await a planned meeting between Trump and Chinese counterpart Xi Jinping at this week’s Group-of-20 summit.