Yesterday, the Japanese yen moved lower in Forex trading. Today, though, there has been a bit of a reversal. Now the yen is surging against its major counterparts, heading suddenly higher.
Against the US dollar, the Japanese yen is moving much higher. One of the reasons that the yen might be seeing success against the greenback could be due to rumors about an increase of dollars soon. Some believe that the US will print money in order to help bailout the eurozone. If the US increases the dollar supply, via an IMF sovereign debt bailout, it would devalue the greenback against just about everything.
The yen is also higher against the euro, but losing ground against the UK pound. For now, Japanese leaders are letting the yen strength stand. However, many Forex traders are wary of depending too much on yen strength, since Japan likes to keep its currency weak. As a result, it is possible that the Japanese will intervene to weaken the yen in order to help exports.
Forex trading is choppy right now in general; traders need to keep on top of things, and pay attention, since the situation could change at any time.
At 16:43 GMT USD/JPY is down to 76.16, from the open at 76.81. EUR/JPY is down to 105.62 from 105.84, and GBP/JPY is managing to hang in ther, up to 121.34 from the open at 121.30.
If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.
