Invesco CurrencyShares Japanese Yen Trust ETF

The Bank of Japan’s Other Currency Battle: The Technicals

The Bank of Japan’s Other Currency Battle - The Technicals (Credit: Bank of Japan)

When I wrote about the Bank of Japan’s (BoJ) currency trap, the presumed intervention looked ineffective on balance. However, it appears the Bank of Japan has a multi-phased plan. Last week’s presumed intervention generated a fresh phase of weakness for USD/JPY (strength for the Japanese yen and Invesco CurrencyShares® Japanese Yen Trust ETF (FXY)). That … Read more

The Bank of Japan Finds Itself In A Currency Trap

currency trap (Credit: HelveticaFanatic at https://www.flickr.com/photos/27469320@N04/2657871668)

The year 2024 may be seen as the time the Bank of Japan’s “free lunch” came to an end. For decades, the Bank of Japan (BoJ) ran a zero interest rate policy (ZIRP) that even descended into negative rates in 2016. The BoJ eased and eased monetary policy (aka printed and printed) to buy Japanese … Read more