USD/JPY holds as concerns over Japanese Yen strength continues

Japanese Yen stabilized against the US Dollar today, as concerns among Tokyo government officials over the strength of the Japanese currency continued.

The Japanese government has expressed concerns about the yen's rapid rise against the dollar and an official has disclosed that Tokyo will take action and will intervene in the exchange rate once the volatility is observed.

The intervention of the Japanese government in the exchange rate of the yen is a concern to Washington, which warned countries manipulating the exchange rate of their currencies to obtain competitive advantages in the export of their products at the expense of the United States.

This was reflected in President Donald Trump's criticism of the President of the European Central Bank, Mario Draghi, as Trump accused the euro area to work to reduce the value of its single currency.

Markets will be focusing on the G20 summit, which is due to be held on next Friday and Saturday in Japan.

In terms of trade, by 19:10 GMT, USD/JPY stabilized at 107.3, with the highest at 107.5 and the lowest at 107.2.