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Thread: The yen fell

  1. #1
    Legendry Member milos's Avatar

    The yen fell !!!

    Click image for larger version. 

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    The depreciation of the Japanese yen against the consequences of fighting deflation,not deliberate weakening of the the currency due to the increase of competitiveness of Japanese exporters,as the market as green light for resale yen.
    Key levels

    UDSJPY
    102.85 resistance
    102.00 resistance
    101.86 last
    99.65 support
    98.90 support

    GBPJPY
    157.00 resistance
    156.45 resistance
    155.96 last
    154.85 support
    154.51 support

    EURJPY
    133.00 resistance
    132.55 resistance
    132.68 last
    130.75 support
    130.25 support

  2. #2
    Specialist Member marvel's Avatar
    The Yen depreciates against all the major currencies after yesterday barrier level on the USD/JPY pair was broken. This is a strong signal for the future depreciation of the Yen as the monetary policy of Japan continues to print more money in order to help the economy to boost.

  3. #3
    Master Member vinayakm's Avatar
    Effects of Abenomics

    The Japanese Yen is now 101.54 to the US dollar and many are wondering how long this trend is going to last. I am here to tell you that we are not heading for 110. The main reason why the Yen will not decline further is diplomacy.

    The Japanese Economics Minister Akira Amari has stated that the government's goal is not to manipulate the currency, but just as a means to counter deflation. This is apt at a time when Japan's big trading partners are not too pleased about the Yen sliding.

    Moreover, aggressive monetary policy by the Bank of Japan could strengthen the JPY and there is also the chance for the Fed to start printing more money if the US economy weakens. This would mean that the dollar would fall further deteriorating the USD/JPY currency pair.

    A third reason for Japan to not allow the JPY to slide further is to control the escalating import costs. Japan's relies a lot on fossil fuels that are imported. Rising energy costs can curtail consumer spending and this will put a big strain on the Japanese economy. A softening Yen will then be considered a negative thing.

    A lot of market analysts foresee the Yen staying at 100 or just below for 2013 and there is a good reason that this could hold true.

  4. #4
    Veteran Member Ammeo's Avatar
    Japanese economy into the dumps once again...

  5. #5
    Senior Member Grae's Avatar
    That is a great analysis for the USDJPY. Some people [me included] have been waiting for the reversal. But look at these predictions from April, about BOJ beating FEDs on QE.

    "According to Credit Suisse, the BOJ's balance sheet as a proportion of the nation's GDP will far outstrip that of the other major central banks (excluding the SNB) within the next two years. This is uncharted territory - nothing of this magnitude has been tried before in a developed economy."
    Taking QE to a whole new level

    I have been expecting a bullish reversal on the jpy. But that stance is fast melting away.

  6. #6
    Senior Member Grae's Avatar
    The backdrop way painted well by the NYTimes:

    "Deflation remains firmly entrenched in Japan, figures show..., as the central bank projected that its targeted level for inflation was still some years off, underscoring that there are no quick fixes for one of the world’s largest economies."

    The tone here 2 weeks ago being that -the yen is sure to weaken further.
    Which it did.

    As always, we dont fight the trend:
    Attachment 423

    But again. we also don't get attached to the trend. Reversals occur when you least expect it.
    Attachment 424

  7. #7
    Senior Member Grae's Avatar
    Quote Originally Posted by marvel View Post
    The Yen depreciates against all the major currencies after yesterday barrier level on the USD/JPY pair was broken. This is a strong signal for the future depreciation of the Yen as the monetary policy of Japan continues to print more money in order to help the economy to boost.
    Marvel, You should be requoted. Actually, i dont want to be at 109.50 with the USDJPY and thinking, I should have hitched that ride... remember Bank of Japan Set the Deflation Turnaround Target Date at 2015 or early 2016.

    And the journey back to 78.00 [July, 2012] needs more bearish pressure than the one to 109.50 [july, 2008] #JustSaying

  8. #8
    Master Member vinayakm's Avatar
    I really don't know if Japan really cares about diplomacy.

    Manipulating is what Japan used to do. Now they are just out right destroying their currency.

  9. #9
    Legendry Member milos's Avatar
    It is opened road to USDJPY to 105 or it will be consolidation.It depends from Japan's GDP and Corel Machninery order.

  10. #10
    Rookie Member
    Thanks for provide this information

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