Japan Aozora Bank: Yen appreciation may reflect end-of-month corporate demand

On June 25th, Jinshi Data reported that Akira Moroga, the chief market strategist of Japan's Aozora Bank, stated that the rise of the Japanese yen against the U.S. dollar on Tuesday may reflect the profit-taking of Japanese exporters before the end of the month and the selling of the U.S. dollar. Commercial USD/JPY trading often increases on dates ending in 5 or 0, such as the 25th. Tomorrow's "real demand" trading may increase as spot trading will be settled at the end of the month. Although intervention warnings may make it difficult for the USD/JPY to rise, some may still hope to go long on the USD/JPY, which also makes it difficult for the currency pair to fall. The yen is likely to return to the 160 level at the end of this month. In the past four years, the performance of this currency pair has always been positive in June and negative in July.