Forex Signals

Overnight Japan was rocked with an 8.9 magnitude earthquake AND a tsunami that has caused major destruction in the island nation. This is an extremely large earthquake for a country that is used to earthquakes; and this has caused tsunami warnings as far away as the West coast of the US.
This has induced some risk [...]

Last week, S&P fulfilled rumors by lowering the Sovereign credit rating of Japan. The move immediately sparked headlines filled with words like “roil” and “turmoil,” and analysts predicted the beginning of a massive correction, like the kind that I forecast in January. I decided to wait a few days before posting on this story, in [...]

The IMF has never seen a VAT they would not hike. They advocate a Japanese VAT hike despite the fact that the late 1990s hike in the Japanese VAT killed a weak recovery and help turn the “lost decade” into the “lost quarter century”.
According to a paper by Takatoshi Ito of the Institute of Economic [...]

Based on every measure, the Japanese Yen was the world’s best performing major currency in 2010. It notched up gains every one of its 16 major counterparts, and was the only G4 currency to appreciate on a trade-weighted basis. Against the US Dollar, it rose 10%, and touched a 15-year high in the process. However, [...]

It seems the gods of the forex market read my previous post on the Japanese Yen, in which I puzzled over the currency’s appreciation in the face of contradictory economic and financial factors. Since then, the Yen’s 6-month, 15% appreciation (against the US Dollar) has arrested. It has retreated from the brink of record highs, [...]

Happy Halloween FX fiends, I mean friends! Indeed, it is very scary at least for the USD as it is now trading at a new historical low versus the Japanese yen. To end the week, the USDJPY surpassed its former all-time low at 80.43 which it set way back in April 1995 [...]

Most of today’s headlines regarding the Japanese Yen focus on one thing: Central Bank intervention. Basically, reporters have become focused on the likelihood of additional intervention in the currency markets by the Bank of Japan. However, this obsession has caused them to overlook the larger issue: Why is the Yen still rising?

I was prompted to [...]

The BOJ may be trying their hand at “stealth” intervention this morning. Rather than buy dollars in their own name, they may be using Japanese banks as proxies so that the buying appears to the market to be “natural” interest rather than merely intervention.
Stop loss sell orders are rumored below the 84.25 level, traders report.

In the overnight markets, the Nikkei average fell some 3.6% to close at its lowest level in more than a year.  This came as a result of the emergency Japanese monetary policy meeting that failed to produce measures that would cause Yen weakening.  There has been much speculation over intervention in the currency, which hasn’t [...]

I last mused about the possibility of Japanese Yen intervention in June (Japanese Yen: 90 or 95?): “It seems that anything between 90 and 95 is acceptable, while a drop below 90 is cause for intervention.” Since then, the Japanese Yen has fallen below 86 Yen per Dollar (the USD/JPY pair is now down 7% [...]