Japanese Yen Could Still Gain Despite Downgrade to BOJ???s Growth Outlook

[DailyFx]

Early on Wednesday morning, the Bank of Japan downgraded its outlook for exports, consumer spending, and manufacturing production, according to their latest monthly report.



The change comes as a global economic slowdown threatens to diminish trade prospects for the export-dependent country. Nevertheless, the Japanese Yen was mixed across the majors and ended the day very little changed, as the financial markets remain jittery, especially on concerns about the health of the two US mortgage giants Fannie Mae and Freddie Mac. Given this instability, traders should continue to keep an eye on technical levels and risk sentiment, as the Japanese Yen tends to trade based on these factors rather than fundamentals.