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Are we there yen?

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Carlsquare
20 Oct 2022 | 1 min read
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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

2022-10-19_CS1
Source: Infront and Carlsquare. Note: Past performance is not a reliable indicator of future results.

United States dollar vs Japanese Yen Spot (USD/JPY), weekly five-year price chart

2022-10-19_CS2
Source: Infront and Carlsquare. Note: Past performance is not a reliable indicator of future results.

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

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