JPY Daily News

Yen Strengthens Despite Speculations of Bank Intervention

The Japanese yen strengthened against most of the major currencies during last week's trading session. The yen gained about 150 pips against the U.S. dollar and the USD/JPY pair is trading near the 84.00 level. The yen gained about 100 pips vs. the British pound as well.

After strengthening throughout the first half of the week, the yen fell sharply against the major currencies, on what was believed to be another intervention by the Bank of Japan (BoJ). However as doubts crept in about whether the Japanese leadership was indeed responsible for the yen's losses, the currency managed to correct itself.

In addition, earlier today the BoJ's Governor Masaaki Shirakawa said that the central bank is closely watching the effect the yen's appreciation is having on the Japanese economy, and is prepared to take appropriate action if needed. This has fueled speculation that another BoJ intervention is only a matter of time.

As for this week, traders are advised to be extra cautious while trading the yen. The Japanese currency continues to be one of the strongest currencies within the majors. At the same time, another intervention looks to be a real possibility at the moment.

Current Time: 05/27 05:26 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
09/27
	06:30	JPY	BoJ Gov Shirakawa Speaks		*	*	*