September 9th, 2014, Guest post by Jay Hawk at Orbex
The Japanese Yen declined sharply to hit a nearly six year low point against the strong Greenback today. USD/JPY traded at the 106.33 level this morning, which it had not seen since October of 2008. Technical analysts also noted an upside break of a triangular consolidation pattern was giving the USD/JPY market some upside momentum.
One of the key fundamental factors cited in pushing the Yen lower was the BOJ Monetary Policy meeting minutes from the August 7th and 8th meeting, which indicated no change in the BOJ’s expansion of the Japanese money base through its quantitative easing program.
The minutes noted that, “Quantitative and qualitative monetary easing (QQE) has been exerting its intended effects, and the Bank will continue with the QQE, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner.”
In addition, Japan’s economy minister Akira Amari indicated that he thought the appropriate forex level should be decided by the market, apparently giving forex traders free rein to sell the Yen even further.
In other economic news, Japan’s Tertiary Industry index for July came out at a disappointing 0.0% for the month versus the +0.3% expected, which was the same as the previous result that was revised upward from -0.1%. In addition, the Japanese Money Supply M2 expanded by 3% y/y in August, which was slightly higher than the 2.9% anticipated.Guest post by Jay Hawk at Orbex