Will Bank of Japan Intervene in JPY?

on Sep 3, 2014

If you remember, our latest article provided 3 targets, as can be seen in the previous chart we sent.


Please look at the graph and see how close our forecast was. We have to understand that the dollar is strong at the moment and Japanese yen seems to be comfortable above 104 which is the strongest resistance since quite some time. The pair spent a lot of time building a base which it could not break till last week, as we stated in our previous report; kindly refer to it in our history.


Regarding the current trend, I have recently been achieving my promises of providing approximate figures in our technical reports, I will use my years of experience to help you have the upper hand in trading the yen.


The dollar touched an 8 month high against the Japanese yen, because of upbeat U.S. data which fueled the demand for the American dollar while expectations for Tokyo to soften the fund policy, will ease their policy.


Tokyo is pleased about such exchange rates, it make perfect sense to me as the American economy is recovering in an almost healthy way. The Japanese economy is supposed to recover as well and make the investments in bonds and securities in Japan a safe haven away from Gold or the euro. Technically speaking it’s a matter of import and export benefits for Japan to have a weak currency.


Japanese yen  in the meanwhile has come under pressure amid market talks that the Japanese Prime Minister might appoint a decision  maker who is expected to be dovish and is planning most likely to shift pension funds toward riskier assets.

Reports that the Japanese prime minster might assign Mr. Shiozaki, as Deputy Policy Chief of the Liberal Democratic Party, to run the health ministry softened the yen.

The Japanese economy and currency (JPY) are not segregated, unlike the euro or USD. The Finance Ministry controls the BOJ and the entire economy, if they’re not happy about the exchange rate they might, as they have done previously, intervene again.

Our expectation is a bearish trend for the Japanese yen and is bullish for the dollar. The targets have not been revealed on the chart as I wanted you to see our previous chart. In the next article we will reveille the forecast levels for the yen.

Follow us dear readers and traders as you wait for the next article which will be published soon.  



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