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The Japanese Yen towered over all major currencies including the Dollar and Pound ahead of the weekend as international capital sought the refuge of safe-haven assets, extending a run of outperformance that might have scope to continue over the coming week.
Read more: Japanese Yen Outperforms and Could Grow Stronger for Longer
The Japanese Yen became the major currency outperformer for July this week but has been widely flagged as having the legs to rise further over the coming days and weeks in price action that would see GBP/JPY at risk of a setback as far as the 144.10 level.
Read more: Japanese Yen’s Relief Leaves GBP/JPY at Risk of Setback to 144.0
The Japanese Yen was a comparative outperformer on Friday and on course to end the week second placed among major currencies after having largely overlooked a storming rebound in Dollar exchange rates that came amid signs of divergence between the Federal Reserve (Fed) and Bank of Japan.
Read more: Japanese Yen Outperforms as USD/JPY Overlooks Dollar Bounce
The Pound-to-Yen exchange rate has recently tested a major 15-year resistance on the charts and may be steeling itself for a break toward six-year highs, according to technical analysts at Commerzbank, although softness in Sterling and a tentative stabilisation of the Yen are headwinds for GBP/JPY.
Read more: Pound-Japanese Yen Rate May be Eyeing Six-year Highs says Commerzbank
The Pound-to-Yen exchange rate edged higher on Tuesday making it one of only two pairs to remain in the black on what was a down day for Sterling, although the rally has been slowing for a while and could now be curbed further in the weeks ahead if a turn higher by the Renminbi leads the Japanese Yen to bottom out.
Read more: Japanese Yen May Curb GBP/JPY Rally if Renminbi's Break Higher Lifts Other Asian Currencies
