Disclaimer: Forex trading involves high risks, with the potential for substantial losses and is not suitable for all persons. The views expressed in this blogsite are those of the author(s) and do not necessarily reflect the official policy, position, or opinions of Global Forex Trading. Excerpt from: Forex Forecast
|  | | November 19, 2008 | | Exports are more important than the yen in currency trading | For years, the Bank of Japan and other Japanese officials have made it clear that exporters are more important than the strength of the yen in currency trading. Indeed, the BOJ has been largely content with a weak yen in order to ensure that its exports remain competitive.
Now, though, the yen is appreciating at a rapid rate. While there are some thoughts that next year could see a decline in dollar/yen, there is still the question of the unwinding carry trade, risk aversion and flight to safety.
As a result, the Bank of Japan is seriously considering intervening to do what it can to slow the yen's appreciation. FX Street reports on the possible yen forex trading forecast:
Traders are speculating the Bank of Japan will need to send a serious
message to the Forex markets at this time. This could come in the form
of a massive selling of Yen coupled with an increase in money supply to
assure the intervention takes hold. This action should have a strong
dilutive effect on the Yen. | Topic Tags: Bank of Japan, currency trading, dollar/yen, forex trading forecast, Japanese yen, yen currency trading, yen forex trading | |
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