Thursday, 17 Mar 2011

Yen Caps Gains Amid Possible BOJ Intervention

The yen appeared to be trading fairly steady against most of its main currency rivals toward the end of the day, as rumors that the BOJ will soon intervene to stabilize the markets began to spread. The USD/JPY has been relatively unchanged from its current level of 78.99 over the last few hours. Similarly, the EUR/JPY seems to have found stability at its current level of 110.69.

Turning to tomorrow, news out of Japan is once again likely to dictate what direction the market takes. Should the rumors of Japanese government intervention in the markets turn out to come true, the yen is likely to take heavy losses against its main currency rivals. That being said, any further escalation in the crisis in Japan is likely to drive investors toward the safe haven yen to close out the week.