Markets Expect Yen Intervention

Currency markets are on high alert for intervention from Japan’s central bank to weaken the yen, which jumped to a seven-month peak overnight after the Federal Reserve outlined aggressive steps to revive the U.S. economy.
Analysts say that any intervention to crimp yen strength, which is hurting exporters, is likely to have only a short-term impact and to really take the wind out of the sails of the strong yen, Japan needs to follow through with monetary easing steps of its own.
According to Dow Jones newswires, the Bank of Japan “checked” the rate at which the yen trades against the dollar during the New York trading session- a move widely seen in currency markets as a precursor to central bank intervention.

via Yahoo Finance

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza