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- Friday, 16 October 2009 23:59:42 GMT Japanese Yen Relinquishes its Top Safe Haven Status to the Dollar
- Wednesday, 14 October 2009 20:52:50 GMT Japanese Yen Mixed as BOJ's Shirakawa Signals End to Liquidity Measures
- Friday, 09 October 2009 20:42:27 GMT Japanese Yen Volatility Likely on Currency Intervention Threat
- Thursday, 08 October 2009 02:09:27 GMT Japan's Current Account Narrows as Exports Fall Most Since January
- Wednesday, 07 October 2009 21:15:18 GMT US Dollar, Japanese Yen Mostly Stronger as US Equities Drift Lower
- Tuesday, 06 October 2009 18:02:29 GMT US Dollar Japanese Yen Exchange Rate Forecast
- Monday, 05 October 2009 19:38:59 GMT US Dollar, Japanese Yen Mostly Lower as G7 Only Mentions Yuan Weakness, ISM Services Hits 16-Month High
- Saturday, 03 October 2009 00:15:45 GMT Japanese Yen to Follow Risk Trends as Prices Test Key Resistance
- Friday, 02 October 2009 00:29:10 GMT Japan's Jobless Rate Unexpectedly Falls, Household Spending Surges
- Wednesday, 30 September 2009 23:15:36 GMT Japan's Business Outlook Improves But Investment Falls Most in 10 Years
- Wednesday, 30 September 2009 20:10:08 GMT Japanese Yen Mixed Ahead of Q3 Tankan Report
- Wednesday, 30 September 2009 00:29:35 GMT Japanese Yen Extends its Retracement as Deflation Sets In and Fujii Weighs in on Intervention...Again
- Saturday, 26 September 2009 01:55:45 GMT Japanese Yen Momentum a Combination of Risk, Intervention and Data
- Friday, 25 September 2009 21:52:51 GMT US Dollar Down Slightly, Japanese Yen Surges as US Durable Goods Orders Fall 2.4%
- Thursday, 24 September 2009 00:07:09 GMT Japanese Trade Surplus Shrinks on Export Weakness
- Monday, 21 September 2009 20:52:46 GMT US Dollar Strength Continues, Japanese Yen Down Ahead of Fed Meeting on Wednesday
- Friday, 18 September 2009 21:10:57 GMT Japanese Yen Forecast Bullish on Lack of Intervention Threat
- Thursday, 17 September 2009 23:58:40 GMT Japanese Yen: What Happens When the Threat of Intervention is Removed?
- Thursday, 17 September 2009 01:26:06 GMT Japanese Service Demand Rises to Highest Since February
- Wednesday, 16 September 2009 19:34:43 GMT Japanese Yen Down as US Equities Break to Fresh 2009 Highs
The Japanese yen has traded very choppily lately, but remains below its October 24 highs where the low-yielding currency ran into critical resistance versus most of the majors.
However, given the drop in US shares on Wednesday that led the Dow Jones Industrial Average and S&P 500 to close at the lower levels since March 2003, it may only be a matter of time before we see the yen test the October highs once again. Indeed, investor sentiment has been the key trend we’ve been following in the forex markets, as bouts of risk aversion that lead equities lower tend to benefit the Japanese yen. According to our latest forex correlations report, the correlation between USD/JPY and the Dow is near the highest levels in at least 20 years, and with stocks likely to fall even lower, the outlook suggests the Japanese yen could gain much more. In economic news, the markets are likely to start paying a bit more attention to the Bank of Japan's rate decision following their surprise 20bp rate cut last month. The BOJ’s Monetary Policy Committee will meet overnight, and while no decision is scheduled to be announced until late Thursday night, they are likely to leave rates unchanged. However, it will be important to get a sense of what the Committee expects for growth and inflation going forward. Bearish investors are betting that many central banks will move towards Zero Interest Rate Policy (ZIRP) in coming months, a policy Japan implemented in the 1990's and essentially stuck with until July 2006. With Japanese interest rates already extremely low at 0.3 percent, the BOJ would logically be the first to get there once again.
Related Article: Japanese Yen May Rally Through GDP Numbers on Carry Flows
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