• 14 hours Electric Vehicle Rebound Bolsters Battery Metal Growth
  • 1 day BlackRock Makes A Run On Asian Stocks
  • 2 days Gold Prices Surge Above $1,800
  • 2 days Chinese Stocks Soar On Bullish Economic Data
  • 3 days Apple’s “Holy Grail Of Data” Leaves Energy Traders Disappointed
  • 3 days Gold Rally Adds $250 Billion To Top 50 Miners' Market Cap
  • 3 days TikTok Is Becoming A New Battleground For Tech Politics
  • 4 days Peru's Mining Industry Pummeled As Coronavirus Cases Surge
  • 4 days Why The World Is So Divided In Its COVID-19 Response
  • 4 days Equities Cheer Stellar Jobs Report, But It May Be Fleeting
  • 5 days Is Tech Billionaire Peter Thiel Done With Trump?
  • 6 days Musk Takes To Twitter To Troll The SEC
  • 7 days Lunar Mining May Commence As Early As 2025
  • 7 days Immigration Will Go Bust Without $1.2B Bailout
  • 8 days The Economics Of The Space Race
  • 9 days Why The World's Central Banks Aren't Yet Sold On Renewables
  • 9 days How Much More Cash Can Uber Burn?
  • 10 days Inside The Biggest Counterfeit Gold Scandal In Recent History
  • 10 days EU-U.S. Trade Relations Are Deteriorating
  • 10 days Over 184 Companies Have Bailed On Facebook
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

  1. Home
  2. Markets
  3. Other

U.S. Dollar Soars against Japanese Yen after Intervention

The U.S. Dollar soared over 3% against the Japanese Yen after Japanese officials finally succumbed to mounting pressure to protect its export-driven economy and initiated its long-awaited intervention.

Early Tuesday night, with the Yen trading at another fresh 15-year low at 82.88, the Japanese government intervened by buying Dollars and selling Yen. Traders described their approach as very aggressive, hitting the market hard, fast and furious. This helped sustain Tuesday night's rally and also may have sent a message to traders that it was serious at this time.

Analysts estimated the size of the intervention to be between $2 billion to $17 billion worth of Yen. The key to maintaining the pressure on the Yen will be periodic intervention episodes to prevent the Yen from going back under 83.00. This price has become the line in the sand for Japanese officials.

Despite vows to continue to fight what the Japanese believe is excessive intervention, Japan has to be careful not to irritate the rest of the world by propping up the Dollar while pushing down the Yen. This most likely means that the Bank of Japan and the government acted alone during this intervention without the blessing and help of other central banks who are dealing with economic issues of their own.

Technically, the USD JPY took out a minor retracement zone at 84.38 to 84.74 before settling slightly below the last main top at 85.90. A breakout over this price will turn the main trend up on the daily chart.

If this occurs, then look for a test of the intermediate retracement area at 86.01 to 86.75. Ultimately, the major long-term chart indicates that 88.93 is the major objective of this developing move. A move to this price will keep the Dollar/Yen under 90.00 so that Japan can avoid the wrath of the major central banks.


Back to homepage

Leave a comment

Leave a comment