On the other side of the equation, you have the Bank of Japan, which has already stated that it is going to keep its interest rates down to 0.25% on the 10-year note. In other words, they are “flooding the market with yen.” In that scenario, it leads to a one-way trade.
. At this point, it looks as if the ¥140 level is going to be an area of intense interest, and if we can break above the ¥142.50 level, then I think it’s very likely that we continue to try to take out the selloff from last week.In that scenario, it’s very likely that this market will continue to be noisy because quite frankly there are a lot of people out there begging the Federal Reserve for a handout because that’s how they’ve been raised.
It’s been 14 years since market participants have had to stand on their own without cheap money, and it most certainly is starting to show itself as a problem. This is a disaster that the Federal Reserve made, and it’s one that they must deal with now. With this, I think we have a situation where we will eventually get to the highest again because I know that the Bank of Japan is nowhere near stepping away from what they been doing, and Jerome Powell keeps reiterating the same issues. With this being the case, I think we got a one-way trade coming again, but that does not mean that it won’t be difficult at times.
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Source: Daily_Forex - 🏆 567. / 51 Read more »
Source: Daily_Forex - 🏆 567. / 51 Read more »