- Analytics
- News and Tools
- Market News
- USD/JPY: Level fundamentally justified from market’s point of view is much higher than 150 – Commerzbank
USD/JPY: Level fundamentally justified from market’s point of view is much higher than 150 – Commerzbank
It seems to be the case that, shortly after the start of FX trading in Asia, USD/JPY briefly traded above the important level of 150. Economists at Commerzbank analyze the pair’s outlook.
Market assumption that 150 constitutes the MOF’s line of defense can turn into a self-fulfilling prophecy
The extremely small distance of the exchange rate to 150 constitutes a sign that the exchange rate fundamentally justified from the market’s point of view is much higher than 150.
If the MOF were to not intervene after a serious breach of 150, we would have to expect a very, very significant jump of the JPY exchange rates. That is not likely to be what the MOF wants. As a result, it will have no choice but to take action when a serious breach of 150 arises. The market assumption that 150 constitutes the MOF’s line of defense can turn into a self-fulfilling prophecy.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
