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 »

This is not the first time in recent history that US interest rates have fallen below Japanese levels. In the past 40 years, this has happened at least 5 times. The most recent time was in 1993.
The following chart illustrates how USD/JPY performs whenever the interest rate spread between the US and Japan [...]

Posted in Bank of Japan, Forex News, Forex Technicals, boj intervention, forex blog, usd/jpy, usd/jpy intervention 6 Comments »

The US dollar continued to hit new decade lows against the Japanese Yen and is inching closer to my 85 target. As you can see in the chart below, there is no support from here to 85. With US interest rates below Japanese rates, more adjustment is happening in USD/JPY.
I do [...]

Posted in Fed Rate Cut, Fed Rate Cut Expectations, Fed fund futures usdjpy, Federal Reserve, Forex News, Forex Technicals, boj intervention, forex signals, usd/jpy, usd/jpy intervention 14 Comments »

US retail sales and producer prices were basically in line with expectations but that does not undermine the fact that the data was very weak and confirms that the Federal Reserve will be cutting interest rates by 75bp next week. USD/JPY hit a 13 year low last night after news that the automaker [...]

Posted in Bernanke, Black Friday, Crude Oil Prices, Fed Rate Cut, Fed Rate Cut Expectations, Federal Reserve, Forex News, US Dollar, US Economy, Yen Intervention, consumer spending, dollar rally, dollar record low, eur/gbp, eur/gbp record high, forex blog, retail sales, usd/jpy, usd/jpy intervention, zero interest rates 7 Comments »

USD/JPY hit a 13 year low of 88.22 today after news that the bailout plan is not going happen before the new year. If you have been following my blog, I called for a move down to a new 13 year low Wednesday morning. At that time, USD/JPY was trading at 92.50-93.00. [...]

Posted in Bank of Japan, Fed Rate Cut, Federal Reserve, Forex News, Forex Technicals, Intervention, boj intervention, forex blog, forex signals, usd/jpy, usd/jpy intervention 5 Comments »