Bullish Breach Expected for the JPY
Posted on 04. Dec, 2008 by admin in JPY Economic News, Japanese Yen, Japanese Yen Currency
The JPY continued its volatile behavior yesterday as it mainly fluctuated against the major currencies. Currently it seems that the JPY is well valued as no significant breach has been made for quite some time. However, the series of worldwide interest rates cut expected today and throughout the following week may put an end to the delicate balance of the JPY.
As known, the Bank of Japan is the only central bank in the western world that avoided cutting interest rates in December. This did not happened because Japan is flourishing and does not feel that an interest rates cut is necessary, but merely because its interest rate is too low (0.30%) to engage in such a cut.
As a result, unless unexpected changes will occur, the JPY seems on its way to embark on a bullish voyage any day now. Traders should pay great attention to world wide developments and wait for the bullish signs of the JPY, as this might be an opportunity to make nice profits.
