The yen has started showing some strength finally when compared to the past four months. However, the Bank of Japan (BoJ) had pushed the inflation target of 2% to 2018 giving room for less positivism.

Since Donald Trump’s victory last November, there has been a waning Japanese Yen. The BoJ is planning on executing two policy measures regarding interest rates in order to boost the growth of the Japanese Economy.

One of the policy measures is to reduce the interest rates in order to hold up to the funding demands made by firms. The other measure is to lower the interest rates of Yen than the peers in order to provide a cheap yen. By reducing the interest rates of the Yen, the global funds will gradually move away and make way for an inexpensive Yen.

However, Yen’s capital outflow would be slow if the rates of the global economies do not rise. From a trading standpoint, we look for a positive Yen in the days to come.


The information and views expressed herein are NoaFX’s opinion about the market and no responsibility (or liability) is accepted for any factual errors or trading decisions made by traders based on this opinion. The contributor might be involved in trading or hold some positions in the market and accepts no liability arising out of the above information.

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