JPY Intervention Not Likely – Mr. Yen

(JP) Former MoF Official Sakakibara (“Mr Yen”) commented that he did not see need for JPY currency intervention at this time as the JPY was not too high at current levels. He saw USD/JPY in range between 75 to 80 for the next few months but move below the 75 handle if the European crisis worsens.


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How to interpret this headline?

In a series of twists of events, JPY was first weakened on speculation of a Joint G7 JPY intervention as a result of Finance Minister Azumi’s comments immediately after the emergency G7 conference call, then positive news out of Australia (Q1 GDP) and surprise Benchmark Rate Cut by PBoC added to the momentum.  Moving forward, understanding that BOJ is watching the Forex market closely (and is likely to have intervened on June 1, immediately after the dismal U.S. NFP Release), I believe it makes no difference whether of not there is a jpy intervention, market is likely to sell off JPY on both risk appetite and the continuous verbal jawboning from Japanese officials…

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Therefore, I would be looking to position LONG trades on JPY crosses (selling JPY), especially against currencies with much better fundamental outlook, such as AUD, CAD, or even GBP (considering that BOE didn’t raise APT)… I’d stay away from EURJPY and USDJPY as both pairs are prune to surprises.

Forex Weekly Outlook May 22 ~ 26, 2017
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About Henry Liu

My name is Henry Liu and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; it is my goal (and vision) to educate every trader on how to take advantage of news trading and become more balanced traders.

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