USD/JPY is on a tear this morning following the better than expected jobless claims report. I think traders are relieved that the deterioration in the labor market can officially be blamed on Mr. Frosty because jobless claims have reverted back to pre-snow storm levels. Although I am worried by the sharp rise in the number [...]

Posted in 2009 japanese yen, 2009 japanese yen forecast, usd/jpy 1 Comment »

The Japanese Yen strengthened across the board as investors cheer new leadership in Japan. After more than 50 years of unchallenged power, the Liberal Democratic Party (LDP) has been finally defeated by the Democratic Party of Japan (DPJ). The big question of if and when Prime Minister Aso will announce his resignation was [...]

Posted in 2009 japanese yen, 2009 japanese yen forecast, hatoyama 5 Comments »

The 95 price level for USD/JPY has served as very strong support over the past few months and now that the currency pair is trading well below that price level, it appears that the floor is caving in.
The following chart illustrates the significance of the breakdown. USD/JPY is trading in sell zone, [...]

Posted in 2009 japanese yen, 2009 japanese yen forecast, Forex Technicals, Japanese Yen, forex blog 2 Comments »

I am back from vacation and found this interesting tidbit that could lead to further Yen strength over the next few days:
Sumitomo have announced they are looking at doing a rights issue next week (up to USD 8.6 bio equiv) of which 50% will be offered to non domestics. This deal is expected to close [...]

Posted in 2009 japanese yen, 2009 japanese yen forecast, Japanese Yen 8 Comments »

All of the action in the currency market today centers around USD/JPY. Over the past 24 hours, the currency pair has surged close to 2 percent, pushing all of the Yen crosses higher.
What Is Behind the Power Move?
It is no secret that the Japanese love yield. They were the primary buyers behind [...]

Posted in 2009 japanese yen forecast, usd/jpy 5 Comments »