U.S. dollar versus yen chart analysis

U.S. dollar is surging versus the yen
Intermediate and near-term uptrend for the U.S. dollar versus the yen as the Bank of Japan adds to the asset buying program.  This is the Japanese version of Operation Twist.

U.S. Dollar versus Yen 3-Year Chart

Bank of Japan has eased the inflation target from 1% to 2% after government demands and most likely will add to the asset buying program. This is the Japanese version of Operation Twist to reinflate the stagnant economy. The net result is a lower yen versus the U.S. dollar and other major currencies. This should help the major exporters like Sony and the Japanese automobile industry.

Are we entering a new period of currency “wars”? Both the ECB and the Federal Reserve have implemented variations of quantitative easing to reinflate stagnant economies. Exporting nations cannot tolerate a rising currency as they try to revive stagnant economies. For example, the euro is already in an intermediate uptrend versus other major currencies and this will not be welcomed by a major exporter like Germany. Relative to other euro zone countries, the German export oriented economy prospered in part due to the weak euro.

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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.

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