Japanese Yen continues to fell against USD dollar to a 2 year low. While the Yen slips lower and the Nikkei climbs higher, it seems that senior policy-makers in Japan are sending mixed messages related to monetary policy. How to make sense of the current situation?
Adam recounts:
It is difficult to think of something that could stop the current trend of yen weakness and the Japanese officials aren't concerned about the fall in yen. There is a high possibility for traders to chase the dollar even higher as there is no clear sign on the charts for a correction soon in the usd dollar's bull run.
Adam recounts:
Economists have turned to data on international capital flows in attempting to explain the weakness of Asian currencies. They believe rising US interest rates combined with the perceived stability of US capital markets are driving risk-averse investors, especially those in Asia, to shift capital into the US, which has generated massive demand for USD.
It is difficult to think of something that could stop the current trend of yen weakness and the Japanese officials aren't concerned about the fall in yen. There is a high possibility for traders to chase the dollar even higher as there is no clear sign on the charts for a correction soon in the usd dollar's bull run.
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