Biding the Japanese yen looks growing containing the current market sentiment as the investors have realized that further appreciation of the Japanese yen can be capped by the Japanese concluded intervention specially after it has had a joint agreement from the other great industrial countries for underpinning the Japanese exports which moving the growth of the Japanese economy after these disaster of the earthquake and its negative impacts on the Japanese exports which have become exposed to the nuclear radiations worries which makes the BOJ intervention subjected to the minimal possible criticism from the European exporters.

And from another side, ahead of the ending of the Japanese repatriations by the end of this month which was reinforcing the Japanese yen can be reused again as a low cost funding currency can encourage the investors further to get use of it at these significant high unacceptable rates exposed to BOJ interventions by speeding up selling it in the benefit investing in other higher yielding currencies and other markets as we have seen even the gold could not endure the selling pressure which has been caused by the crisis in the sack of liquidity to fall below 1400$ to 1380$ by the Japanese intervention as a share of the funding liquidities has been drawn out from the market because of this crisis.

So, By God's will,, these can put pressure on the USDJPY to reach again 83.28 and breaking it can lead to the upper band of the side way which has been taken since the middle of last December at 83.94 then 84.51 and breaking it too can open the way for 85.92 by accelerating the pair buying momentum.

 

Kind Regards

FX Market Strategist

Walid Salah El Din

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