Even with Yen Lower Today, Intervention on the Table

Japanese yen in currency trading
The Japanese yen, like the U.S. dollar, has been seen as a safe haven currency through this financial crisis and global recession. However, like the dollar, the yen is down right now in forex trading. This is because as optimism rises for plans of economic stimulus, demand for safe havens decline — risk appetite is improving.

But that does not mean that the Japanese government has completely abandoned its plans to possibly intervene in the FX market. After all, even though the yen is lower in forex trading, it is still at levels not seen for years. And the possibility of upward momentum is still there, since after the economic stimulus package is passed, it may not be deemed enough to reverse the current recession.

However, even as montary leaders in Japan consider releasing its reserves into the market to reduce the value of the yen, there is reluctance: The G8 disapproves, and Japan doesn’t want to run the risk.

See Also

• More on the Safe Haven Currencies
  Yen, dollar in forex trading
• Japanese Yen in Currency Trading
  Forex trading with world currencies

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