The massive intervention by the BOJ to weaken the yen sent USD/JPY more than 200 pips higher. The move is far from over. The first intervention in 6 years comes after months of failed verbal intervention. Here are 5 reasons why this move will be powerful. There are significant differences between the failed interventions by the Swiss National Bank and this move: Long buildup: this move followed months of warnings and negotiations with other central banks. While this move is the sole work of the BOJ without joining forces, central banks and traders were anticipating this move and learn to accept it. Japan means business: they keep on pushing forward, all the time. It wasn’t a one time move. US figures support the move: The intervention comes after the influx of bad US figures ended. Recent numbers such as are better – Non-Farm Payrolls and retail sales have been hopeful. Better US figures mean a stronger USD/JPY. Europeans are OK with it: They would prefer a coordinated move but they do note the rapid equiproportional appreciation of the yen and said it was bad for the recovery. The Chinese factor: China recently passed Japan as the world’s No. 2 economy. China enjoys a low-valued currency which it fully controls. The US has urged China to release the yuan but the moves have been subtle to say the least. In the meantime, Japan’s yen strengthened and weakened Japan’s economy. A weaker yen could indirectly be a political interest of the US. So maybe the move wan’t coordinated with the US, but they might back it somehow. Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next Forex Daily Outlook – September 16 2010 Anat Dror 13 years The massive intervention by the BOJ to weaken the yen sent USD/JPY more than 200 pips higher. The move is far from over. The first intervention in 6 years comes after months of failed verbal intervention. Here are 5 reasons why this move will be powerful. There are significant differences between the failed interventions by the Swiss National Bank and this move: Long buildup: this move followed months of warnings and negotiations with other central banks. While this move is the sole work of the BOJ without joining forces, central banks and traders were anticipating this move and learn to… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
