Article Summary:

Here is a collection of Forex News Updates, Other Forex Trading System Resources and Information.The last time I wrote about a possible Bank of Japan intervention to the weaken the Yen, it happened within two days!  So I’m writing about it again today!  But seriously, the USD/JPY currency pair is approaching that 76 level which some have considered the “line in


Article Content:
The last time I wrote about a possible Bank of Japan intervention to the weaken the Yen, it happened within two days!  So I’m writing about it again today!  But seriously, the USD/JPY currency pair is approaching that 76 level which some have considered the “line in the sand” for the BOJ and is near the levels the last time they intervened to weaken the Yen.

However, this time it may be different.  With the potential Greek default looming over the markets, the uncertainty that will follow could be too big of a financial tidal wave for the the Central bank to overcome alone.  So while they would obviously love to weaken the Yen, the overall fear in the markets and risk aversion that drive the unwinding of carry trades may need to abate before they take action.

The potential for loss is too great at this point, and previous interventions including the most recent one have been largely ineffective.   And they have also been somewhat half-hearted.  The BOJ may however be emboldened by the action taken by the Swiss National Bank (SNB) and their target range for EUR?CHF above 1.20.  This has held despite the recent accelerating problems in the Euro zone, though it could be costly in the long run if there is a Greek default.

Nevertheless, the Yen is trading near ten-year highs vs. Euro and Pound as well, so they may feel the need to do something.  Let the race to the bottom begin again!

 

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