(JP) Japan PM Noda replaced 5 ministers in his cabinet in order to garner support for the sale tax hike bill.
(JP) IMF’s Shinohara: To issue new language on JPY currency next week.
How to interpret these headlines?
Traders were perplexed after Friday’s NFP release and saw JPY became weaker than USD after initially strengthening to the 77.60 level. Market saw an initial boost in USDJPY strength at the open of trading this week, largely reflecting the potential of BOJ intervention that drove the Yen weaker, despite of the across the board weakness in the Greenback.
Because of the timing and the implication, I believe 78.0 level with USDJPY is now crucial and potentially could serve as a floor for the pair… If BOJ were to maintain their interests in this, then I’d stay away from further JPY buying, at least until the Fed announces another round of QE.
BOJ Intervention: Japanese Sneak Attack On The Forex Market?
June 4, 2012 by Leave a Comment