Future Looking Brighter For Japan Investments

Forexyard submits: It didn’t take long for forex traders to notice the sharp rise in JPY crosses this morning. But many have expressed a type of unfamiliarity with the politics of Japan to truly grasp what was happening. Let’s try to understand what’s going on there. First off, Japan likes having a weak yen. In fact, it loves having a weak yen. If the Bank of Japan ((BOJ)) could keep the yen exceedingly weaker than it currently is, it would.

Daniel Zurbrügg submits: “I don’t understand currencies.” This is a statement that we hear a lot from our clients and I admit that many of the moves in global currency markets do not seem to make sense at first glance. Investors should keep in mind that there are always a number of factors at play causing moves in currency markets.

Daniel Zurbrügg submits:ECHO FROM THE ALPS 4th Quarter Report – October 2010 MARKETS HEATING UP AS THE SUMMER COOLS DOWNIt’s been a bit more than three months since we published our last edition of “Echo from the Alps” and markets have moved significantly since then.

Joseph Trevisani submits:The Bank of Japan intervened unilaterally in the currency markets overnight in Tokyo for the first time in six years to weaken the yen. The Japanese currency had been trading at 15 year highs against the dollar and was viewed by the government of Naoto Kan as a serious problem for the export economy.

In hope-against-hope scenario, countries with balance-of-trade surpluses struggle to maintain it. Put Japan, Germany, Brazil, and China in that group. In that group, Japan is losing the Balance of Trade Battle.

FXedu submits:For the first time in nearly 11 years, currency intervention by the G-7 has helped weaken the Yen in the wake of the catastrophe taking place in Japan. Thus the G-7 has been selling, though it will be interesting to see just how weak the Yen can go given the economic climate. Japan had trying to weaken on it is own, though the tide it was facing was too great to manage alone.