Japanese Yen’s Weakness in the Forex Market

The Yen’s weakness could be far from over. Falling to a 2+ year low and breaking through critical resistance levels, the technical and fundamental outlooks of a USDJPY long are synchronized.

Since the middle of November, the Yen has been falling lower, lower, and lower. The Japanese Yen could still have a long way left to fall…

The U.S. Dollar/Yen may retreat in result of profit taking, but you can be sure that Investors are on the sideline waiting to short the Yen again when the opportunity rises.

Dear Yen, Why Are You So Weak?! The new leader of Japan, Shinzo Abe wants to increase the Japanese quantitative easing program. Already at a whooping 101 Trillion Yen, further easing could bring drastic Yen weakness to the Forex market. In the coming months, a new Bank of Japan Governor will come in to power. With the old out and the new in, Abe’s relationship with the new leader could determine much of this year’s Japan monetary outlook. If the BOJ has a leader who favors Abe’s QE requests, it’s more likely that further substantial easing will take place this year.

According to Reuters, Ian Stannard, head of European FX strategy at Morgan Stanley in London has stated that the pullbacks in the USD/JPY have been very shallow and this underlines the strength of this trend.

“The pace of increase not just (in dollar/yen) but also the pace of policy reforms in Japan is exceeding market expectations,” said Ian Stannard.

“As a result we have raised our forecast even further … looking for dollar/yen to move towards the 95 level by the end of this quarter.”

Ian! 95 by the end of this quarter!?

Folks, this Yen trade isn’t something you see everyday. There could be a lot of great Japanese Yen trade opportunities in the coming weeks and months. Make sure you have your Forex Trading System in order.

Don’t Mess With Abe The radical Yen weakener, Shinzo Abe has regained his leadership of Japan and unashamedly wants to decrease the value of the Yen. Abe understands that if he wants a stronger economy, he needs a weaker currency, a weak Japanese Yen.

His influence is not to be underestimated. As a talking head and an influence on Japanese monetary policy, he could very well get what he wants: A WEAKER YEN.

Shinzo Abe isn’t the only one who wants a weak Yen. Much of the world would like a weaker Yen. With a weaker Yen, importers get their goods cheaper, while Japan, the exporting giant sells more goods. Sounds great in theory.

How weak will the Yen get? How low can the Yen go? 105 by the end of 2013? 110?

EURJPY

Have you seen the EUR/JPY? Let me know what you think about the Yen below! Forex Trading may never be the same!

Always feel welcome to connect & comment!

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  • you should find out, why third world country GDP have 5% growth per years πŸ˜‰ (still their Trade balance deficit 1b) lol.

    just FYI, weaker currency is not just more profit for exporter, weaker currency mean big oppurtunity ! I mean Huge oppurtunity πŸ™‚ just to be honest, I am not exporter, But I will cry if my currency apreciate πŸ˜€ LOL

    WELCOME To the Third wolrd country Games I.e Devaluation πŸ™‚

  • anonymous

    “With a weaker Yen, importers get their goods cheaper, while Japan, the exporting giant sells more goods.”. Haha. This is funny. Read that again. Weaker yen means importers in Japan pay MORE. And a weaker yen does not mean exporters sell more – demand stays the same – just that exporters receive more yen for their goods. But japans imports now far exceeds its exports! Look at the trade balance and account balance! Be veeeeery careful…..