Japanese Finance Minister Yoshihiko Noda speaks after Japan intervened in the currency market for the first time in six years to weaken the yen, at his ministry in Tokyo Wednesday, Sept. 15, 2010. The U.S. dollar bounced up to 84.52 yen from a low of 82.87 yen earlier after Japan’s central bank stepped into the market to sell yen and buy dollars. “We have conducted an intervention in order to suppress excessive fluctuations in the currency market,” said Noda. (AP Photo/Kyodo News)
But Japan did not reveal the figure they are selling to weaken Yen. Yeah, good job bro! Even I was not there at the right time 🙁
But how long this will give effect for Yen if only Japan doing this, without other banks follow what Japan did. I believe, what happened to Yen will not in long run there is no action taken by other central bank. And also, soon we can see Yen weaken again.
“Although the central bank’s policy initially appeared successful, its experience this year illustrates why interventions may not be effective,” a JPMorgan report said this summer.
Back to my analysis for EURJPY.. since last year, I expect EUR JPY will going down to the level 95. Currently at 111.29. Still a long journey to reach level 95.