Importer demand pushes the yen lower from near six-week highs.

On July 18th, Jinshi Data reported that the yen weakened from a six-week high as local companies bought dollars due to the recent significant appreciation of the yen. The dollar/yen pumped 0.1% to 156.33, after previously falling 0.5% to 155.38, the lowest level since June 7th. The currency pair fell below the rising trendline that has been serving as support this year. Fukuhiro Ezawa, head of the Tokyo financial market at Standard Chartered Bank, believes that “strong demand for the dollar from Japanese importers has limited the yen’s rise.” However, the dollar/yen is facing heavy pressure to rise, as breaking the trendline earlier prompted traders to stay on the sidelines.