Yen eyes “Par” with the Dollar… a matter of WHEN not if

by Joe Oliver, Forex Trading-Pips

The Yen continues to eye “par” as the psychological big figure 100Yen / dollar proves for the time being to be formidable resistance.

Given Mr Abe and Mr Kuroda’s outright resolve to debase yen using whatever means necessary it is simply a matter of when not if 100 Yen is taken out to the upside.

We are currently short Yen versus the US dollar in our Forex Signals Program daily intermarket component.

More on the Yen and the recent G20 meeting from Kenny Fisher of OANDA Forex Broker…

There was little surprise that the G20 did not take Japan to task over its monetary policies, which have resulted in the yen taking a tumble. G20 final statements tend not to criticize its members, and this meeting was no exception. Although there has been a lot of criticism leveled against Japan, the G20 issued a very soft statement about currency devaluation which made no mention Japan, giving it a green light to continue its aggressive easing measures. Finance Minister Taro Aso has insisted that the measures are aimed at stamping out deflation, and the yen’s plunge is a “byproduct”. With the BOJ moving full steam ahead in its fight against deflation, traders can expect the Japanese currency to continue to weaken….More at EUR/USD – Fluctuating After More Weak German Numbers

Large round numbers like the 100Y/dollar are frequently used by traders for profit taking targets and stop loss levels which is why prices will often gravitate to and consolidate around the ‘big figures’.

For more information about the recent price consolidation in the Dollar Yen check out Boris Schlossberg’s most recent video market update below…