Forex Analysis

Forex trading with the Japanese yen
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Yesterday, the U.S. dollar had a complete meltdown in forex trading against the Japanese yen. This was relatively surprising at first, since the dollar has been expected to do better than the yen as economic conditions improve. GFT's Kathy Lien explains the USD/JPY meltdown in FX360:
U.S. interest rates are also sharply lower with bond yields falling across the board. The narrowing spread between 10 year U.S. Treasuries and 10 Year JGB (Japanese Bonds) yields may have also added pressure on the currency pair. Japan also imports the majority of its oil and therefore the continual slide in crude prices provides exceptional relief for the Japanese economy and finally, the IMF released its updated growth forecasts and based upon their projections, sharply higher growth is expected in Japan next year. As you can see, it was a combination and not a single factor that triggered the meltdown in USD/JPY.
Today, the U.S. dollar appears to be on the road to recovery in currency trading against the Japanese yen, moving higher even as it falls to the euro and the sterling.


U.S. Dollar in Forex Trading
Trade currencies on the FX market
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Topic Tags: currency trading, forex trading, forex trading yen, FX360, Kathy Lien, USD/JPY, USD/JPY currency trading