Are we there yen?
It has been over 20 years since the Japanese Yen reached the same lowly levels where it is at currently. Hovering just under 150 ¥ per $US on Monday, the currency is as weak as it was in 1998 when the bank of Japan intervened
Japan has always
been a big exporter in some areas, e.g., electronic devices, and a big importer
in other areas, e.g., oil. With the current weak yen both importers and
pensioners are suffering as prices rise with the overheated economies of the
world. While all the other nations are tightening their policies in order to
try and stem the flow of rampant inflation, Japan sticks out. Being the only
one left doing something others have stopped doing begs the question: are you
brave or naïve?
Due to the
release of the consumer price data on Friday 21 October and with a government
that has seen better days in terms of approval, it is likely an intervention
just might be around the corner. This intervention could turn the tide and stop
Japan from being the fiscal equivalent of the odd-one-out.
United States dollar vs Japanese Yen Spot (USD/JPY), daily one-year price chart
Bull & Bear-Certificates
United States dollar vs Japanese Yen Spot (USD/JPY), weekly five-year price chart
The full name for abbreviations used in the previous text:
EMA 9: 9-day exponential moving average
Fibonacci: There are several Fibonacci lines used in technical analysis.
Fibonacci numbers are a sequence of numbers in which each successive number is
the sum of the two previous numbers.
MA20: 20-day moving average
MA50: 50-day moving average
MA100: 100-day moving average
MA200: 200-day moving average
MACD: Moving average convergence divergence
Risks
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