Monday, March 6, 2006

Koizumi vs. BOJ

Japanese Yen (USD vs JPY) manages to break above 1.1700 level this morning amid ongoing policy-shift debates.

More headlines and quotes:


BOJ governor Fukui:" We are entering an important phase as the situation surrounding the economy and prices is heading toward a favorable direction."

Prime Minister Koizumi:" We can't have a situation where they shift policy, and then have to reverse course should things go wrong.''..."Since the Bank of Japan governor is a wise person, I think he will make a wise decision."

Personally, I think the
policy will be adjusted at a meeting on March 9 and not April. Since there is still a lot of uncertainties out there, I will be extra cautious. My strategy will be staying with the current trend and will only enter/buy the market at price support levels .

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