Flash: Yen bear trend looks technically powerful - RBS

FXstreet.com (Barcelona) - Yen bearish trend looks technically powerful and has a strong underlying medium term fundamental reason that supports further gains, notes Greg Gibbs, FX Strategist at RBS.

Key Quotes

"The fall in JPY may relate to some belated recognition of rising inflation expectations in Japan in Q3 contrasting with falling inflation expectations in other major economies, and further deterioration in Japan’s trade balance."

"It may relate to views that Japan will more clearly be pursuing the biggest central bank asset purchase program for a longer period. And it may be viewed as a continuation pattern after a long period of consolidation since the peak for the year in May."

"Perhaps the lack of yield support for the recent weaker JPY trend will slow its advance."