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USD/JPY H4 chart, source:forexfactory.com |
Japanese YEN, JPY is evaluated as one of the safety asset with US Dollar. In the financial crisis and the
earthquake in eastern Japan, JPY recorded high against the major currencies. When the earthquake occurred, it
recorded highest level since the World War II.
Abenomics has made JPY turn down. Because weak JPY leads the increase of the export of Japanese goods and the on-going deflation may be finished. Weak JPY has made the export-ease of Japanese corporations.
But the uncertainty of global economic situation since 2008 seems not to allow the weak JPY any more. A few days ago Bank of Japan, BOJ decided the minus interest to inter banks, it means the bank should pay the fee for the deposit to BOJ. BOJ did to provoke the Japanese economy under the deflation. But the market participants seem to think that these measurements and uncertain global economic situation need the strong JPY due to the safety asset.
At the 4-hour or longer chart, the downtoward trend line looks explicitly(weak USD, strong JPY) and USD/JPY currency pair moves on the trend line.
JPY/USD pair records 111.85 now according to forexfactory.com.