Data released by the Bank of Japan (BOJ) on Friday showed that the Japanese authorities may have spent 3.3 Trillion Yen (22 Billion USD) on July 11 to intervene in the currency markets.
It's important to remember that regardless of how strong the intervention is, the Japanese Yen will continue to see losses unless the fundamentals of the currency change.As long as we have stable global growth and positive risk sentiment, the JPY should find it hard to maintain any strength.
Back on the 5th of May 2024, I did an analysis on the previous Bank of Japan intervention. I predicted that price will return to the highs before the intervention. 2 months later, price did exactly as I predicted. I believe this new intervention will yield the same outcome. However, due to the Federal Reserve possible cutting rates next month due to easing of inflation, USDJPY may take slightly longer to return to previous highs.
This analysis is same across the board with all JPY pairs.
It's important to remember that regardless of how strong the intervention is, the Japanese Yen will continue to see losses unless the fundamentals of the currency change.As long as we have stable global growth and positive risk sentiment, the JPY should find it hard to maintain any strength.
Back on the 5th of May 2024, I did an analysis on the previous Bank of Japan intervention. I predicted that price will return to the highs before the intervention. 2 months later, price did exactly as I predicted. I believe this new intervention will yield the same outcome. However, due to the Federal Reserve possible cutting rates next month due to easing of inflation, USDJPY may take slightly longer to return to previous highs.
This analysis is same across the board with all JPY pairs.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.