The first two trading days of 2011 has been very kind to USD/JPY. After falling for 2 weeks straight, USD/JPY has finally found a bottom. According to my 2011 Dollar outlook, improvements in U.S. data should help the dollar recover in the beginning of the year. So far, we have seen some [...]

Posted in 2010 japanese yen forecast, usd/jpy No Comments »

USDJPY is down on the day and it shouldn’t be surprising for those of you that have been watching yields. Since the beginning of the year, the USDJPY has had a 90 percent positive correlation with 10 year yields. Today, yields are down and accordingly, so is USDJPY. The big debate in [...]

Posted in forex blog, usd/jpy No Comments »

The U.S. dollar fell to a 7 month low against the Japanese Yen this morning following another barrage of weak economic data. Consumer prices fell, foreign inflows decreased and the UMich consumer confidence survey dropped to the lowest level since August 2009. On FX360.com, I talked incessantly in my daily report about how [...]

Posted in 2009 japanese yen, 2009 japanese yen forecast, 2009 us dollar forecast, ECB, Japanese Yen, forex blog, usd/jpy, usd/jpy intervention 7 Comments »

Look at this, USD/JPY moving along with 2 year yields. What does this suggest? That next week, USD/JPY could bounce. If payrolls is very weak, that may not happen, but U.S. yields are nearing very low levels and short positions area heavily weighted to USD shorts.

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

Japan announced a new Prime Minister this morning - Naoto Kan. Hopefully he will have better luck than his 4 predecessors who resigned with only a year or less in service.
Resignations by Prime Ministers can have a significant impact on the country’s currency because its performance reflects investor sentiment. Forex traders typically [...]

Posted in 2009 japanese yen forecast, 2009 us dollar forecast, forex blog, usd/jpy 3 Comments »