BOJ intervention possible after USD/JPY drops to 3-month low
- Last Updated on 09 February 2012
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Investor concerns that the Bank of Japan (BOJ) would soon move in to influence the markets were reinforced yesterday, after the USD/JPY dropped to a fresh three-month low during European trading. The BOJ has been known to intervene when the yen gets too strong. The Japanese economy is largely export based, and a strong currency tends to have adverse effects on economic growth.
Turning to today, traders will want to pay attention to US news which is likely to impact the USD/JPY pair. Unless the news set to be released comes in better than expected, the greenback may continue to fall, in which case the possibility of a BOJ intervention may be more and more likely.