Monday, January 29, 2007
YEN bull coming ?!In BRUSSELS, JUNCKER had some comments within YEN. He did mentioned that Japan's recovery in economy should be reflecting in YEN rate. Again placing YEN cross (especially EUR/YEN) in tension. Just after his comments, yet we do have EUR/YEN hitting back down below 158 level. Is this the end of YEN south train move? If you ask me I will just say that it will definitely slower down the momentum of YEN cross to hit historically high, but still I have no sight to agree that YEN will start to be stronger since here.
BOJ had just disappointed some of us in interest rate decision not longer ago.(I do expect YEN bull come only after BOJ willing to rise rate.)The decision was made to fulfill what Japanese government was asked for. What does this mean? To me this simply tell us that Japanese government want all of the country's fundamental economical criteria to keep unchanged. They do not want to risk any single thing, even it might be 'affordable' for the country current economy prospect. 'Export' is what they really care , and this does not support bull YEN. (Try to imagine what will be the scenario when we have less internal consumption power in nearly all major economy bodies? )