The Japanese yen lost value against all of its major rivals during the Wednesday trading session amid sentiment noting the currency's bullish streak Tuesday was overdone, according to Bloomberg.
The monetary unit of the Pacific Rim country lost at least 0.2 percent against each of its top counterparts, notching losses for the third trading session during the past four against the U.S. dollar. Japan released data noting machine orders fell more sharply than forecast by economists, prompting speculation to mount that easing policies implemented by the Bank of Japan will continue.
"We are seeing a shakeout of the long dollar/short yen trade, given that the BOJ has refrained from taking additional measures," FX and Investment Management head Mankesh Jain with hedge fund Solo Capital told Reuters on Wednesday. "But we expect the BOJ to address the issue and look to buy dollar/yen at 96 yen, with stops at 95 yen for an eventual move to 99 yen."
BNP Paribas forecasts the yen to drop to 100 per dollar within the next month.
On Tuesday, the U.S. dollar lost almost 3 percent of its value against the yen, according to Reuters.
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