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Japanese Intervention Plan Getting No Support from Central Banks

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Sep 22, 2010.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today’s sample of Forex Analysis from ForexHound.com

    The USD JPY hit a key 50% price at 80.40 as forecast, triggering some light profit-taking. Although traders anticipate another round of intervention, there has been no notable central bank activity at this time. This could mean that aggressive traders will continue to push the Dollar/Yen lower into the next retracement level at 80.04.

    The 50% correction of the “Intervention Rally” in less than a week proves that the Bank of Japan and Japanese officials will have to work harder to weaken the Japanese Yen. I warned before the intervention that they seldom work without the cooperation of other central banks. The Fed’s strong hint at further stimulus was a sign that it was not on the same page as the BoJ since its poor assessment of the U.S. economy was bad of the Dollar.

    Whether the Fed is deliberately weakening the U.S. Dollar can be debated, the bottom-line is, Japan can cry all it wants about the strong Yen weakening its economy, but the Fed is not concerned because the U.S. economy has problems of its own.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

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