On Monday the USDJPY bounced off a 4 in-a-half-year low after the BOJ economic minister suggested Japan might be satisfied with it’s current level. (Reuters)
Since November the Yen has fallen around 2500 pips against the United States Dollar. The Japanese Yen weakness in the Forex Market is thought to be caused intentionally by the Bank of Japan, since Japan has an export-based economy.
The Japanese economy depends on exports, to the United States, China, South Korea, Europe, and other nations.
A strong currency makes exports very pricey for overseas buyers. Having an export-based economy, Japan desires the Japanese Yen to be weak. Japan manufacturers long for a weaker Yen so, theoretically they can sell more goods.
In April, the BOJ released the a stimulus promise of injecting $1.4 trillion into their economy in less than 2 years so they can meet their 2% inflation goal.
The Japanese Yen weakness could be far from over, friends.
Also, if you don’t have your own Forex Trading System with a trading plan make sure you read the Forex Trading System article!
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