- Analytics
- News and Tools
- Market News
- The Yen is far from being saved from further weakness – Commerzbank
The Yen is far from being saved from further weakness – Commerzbank
USD/JPY scratched the 152.00 level. Ulrich Leuchtmann, Head of FX and Commodity Research at Commerzbank, analyzes the pair’s outlook.
The MOF's firepower is in principle limited
Unlike in the 1990s and early 2000s, this time the direction of intervention (supporting the JPY) is one in which the MOF's firepower is in principle limited – by the stock of foreign exchange reserves. At this point, I should find out how much foreign exchange reserves the MOF has access to. All it takes is a few clicks on my screen. But I don't even need to do that. Because it must be absolutely clear that no currency reserves in the world will be sufficient if the foreign exchange market decides to bet against intervention.
But because a sufficient number of market participants have to agree on this, it is not certain that such market behavior will occur; it often requires a crystallization point, an occasion.
Friday's low inflation data from Tokyo could be such a crystallization point. This means that even though the market is currently reluctant to trade USD/JPY above 152.00, the Yen is far from being saved from further weakness.
© 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
