From FT Alphaville:
JPY, it wasn’t meant to be this way
What must the BoJ be thinking as the yen keeps getting stronger post the Japanese central bank’s announcement of negative rates?
That’s an inverted JPY in blue and the falling Nikkei in yellow YTD. It shows the yen hitting 111 against the dollar as the world gets dangerous once again. According to Fast, the next big level is Y109.21, the level it was at before the additional easing by the Bank of Japan on October 31 2014.
Here’s the 5yr view:
Here’s HSBC’s David Bloom on the possibility of a coming intervention:
Japan’s surprise move to a negative interest rate policy at the end of January similarly had only a temporary weakening impact on the JPY....MORE
