Afternoon Forex comment

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Afternoon Forex comment

charlie4573

24th February 2006

US Dollar / Japanese Yen update

A close below 116.70 for the Japanese Yen would be the strongest close since the end of January. This would be a strong signal for traders to take the Japanese Yen to the expected support at 116.10 and then the next target at 115.50. With the Bank of Japan seemingly on the track away from zero pct interest rates, the unwinding of many ‘carry trades’ is only a matter of time. This unwinding will slow any Japanese Yen advance but probably won’t be too much of a factor until late summer or autumn just before the Bank of Japan starts to impose positive interest rates.