Tuesday saw the Japanese yen increase in value against the world's reserve currency as speculation noted that the past three trading sessions of losses of 6.4 percent against the U.S. dollar were overdone, Bloomberg reports.
After scraping its lowest value in nearly four years on Monday, the yen edged higher against the greenback. The bearish streak was linked with the Bank of Japan committing last week to upgrading its monetary stimulus program.
"Prices have almost reached this week's first key profit-taking target at 99.72, a 50 percent recovery to the bear market between 2007 and 2011," states a client note penned by currency analyst Max Knusden with ADS Securities LLC in Abu Dhabi, according to Bloomberg. "As an important target for sentiment, some profit taking is likely."
Shinizo Abe won election as prime minister in December and has emphasized stimulus to spur the globe's third-largest economy since prior to his election. The yen has lost 22 percent of its value in the past six months against the U.S. dollar.
Japanese bond yields remained low in the aftermath of Bank of Japan policies, according to Reuters.
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