Talk of BoJ Intervention Keeps USD/JPY Above Water

This morning, I published an article about how talk of BoJ intervention is keeping USD/JPY above water:

There is a lot of talk this morning that the Bank of Japan is checking currency rates. The Japanese Yen has continued to rise over the past 24 hours and by checking rates, the central bank is keeping a very close eye on where the Yen is trading. Given that it is almost 11pm in Japan right now on a Friday, the central bank is either very serious about intervening in the currency market or they want to keep currency traders on their toes. The 87.00 level for USD/JPY could very well be their breaking point. The risk of intervention is limiting the decline in USD/JPY on a day when the sharp drop in Dow futures should be driving it much lower. Over the past 6 months, we have seen a significant appreciation in the Japanese Yen to the point where the central bank can no longer ignore it. For example, the Yen has risen more than 40 percent against the British pound, Australian and New Zealand dollars.

See chart and continue reading article

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3 Comments

  1. I could really appreciate your work. But on the other side, do you think JPY will become at the above level among the other countries through-out this month or they will shrink?

    Reply

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