Yen Falls Amid Risk-on Mood

(RTTNews) - The Japanese yen weakened against other major currencies in the Asian session on Monday, as markets react positively to China unveiling a special action plan over the weekend to revive consumption and to boost the stock and real estate market. The ongoing concerns about the impact of President Donald Trump's trade policies are hurting market sentiment.

Traders focus on the Bank of Japan (BoJ) decision on Wednesday. When the BOJ's two-day policy meeting ends on Wednesday, it is anticipated to maintain rates at 0.5%. Any clues on the outlook will be gained from Governor Kazuo Ueda's press conference following the meeting.

Traders are increasing their wagers that the Federal Reserve will need to decrease interest rates multiple times this year, as the likelihood of an economic slump increases due to Trump's trade tariffs.

The Fed is widely expected to hold interest rates steady at the latest policy meeting on Wednesday, as traders now focus on Fed Chair Jerome Powell's post-meeting comments for any changes in tone.

In the Asian trading today, the yen fell to 5-day lows of 192.85 against the pound, 149.10 against the U.S. dollar and 167.86 against the Swiss franc, from Friday's closing quotes of 192.20, 148.62 and 167.86, respectively. If the yen extends its downtrend, it is likely to find support around 194.00 against the pound, 152.00 against the greenback and 169.00 against the franc.

Against the Canadian dollar, the yen slipped to nearly a 2-week low of 103.75 from last week's closing value of 103.42. The yen may test support near the 106.00 region.

The yen edged down to 162.26 against the euro, from Friday's closing value of 161.68. On the downside, 163.00 is seen as the next support level for the yen.

Looking ahead, Canada housing starts for February, U.S. retail sales for February, U.S. NY Empire State manufacturing index for March, U.S. NAHB housing market index for March and U.S. NOPA crush report are slated for release in the New York session.