Excerpt from: Forex Forecast
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| January 02, 2009 | | Will Yen be as popular in 2009 on the currency market? | 2008 marked the year that the Japanese yen became rather popular on the currency market. However, the forex trading forecast for the yen in 2009 might not tell the same story.
If economic stimulus takes hold, risk aversion will decrease, and a renewal of the carry trade may be seen. Indeed, as financial markets around the world stabilize, risk appetite is likely to grow.
Another issue is that the Japanese government does not approve of the yen's appreciation in FX trading. Even though other countries are encouraging the yen to stay out of the FX market, the government is considering intervention. (Although, if the yen can drop on its own, due to other factors, the Japanese government may yet stay out of it.)
All in all, it looks to be an interesting year for the yen on the currency market.
| Topic Tags: carry trade, currency market, currency trading, economic stimulus, forex trading, forex trading forecast, FX market, FX trading, Japanese yen | |
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