Yen (japanese currency) exchange rate

n spite of a sharp monthly reversal, the matched trend lows of 87.15 from the months of December as well as January, the Forex market has been confined to an important downward trend while the current rebound has been classed as corrective. As was witnessed in the Forex market, a daily double bottom has been initiated, and it is hopeful that the Japanese yen will climb back to the 104.00 area.

Interest Rate Forecast of Japanese Yen and US Dollar Interest Rate

The pair of currencies which consist of the US Dollar/Japanese Yen seems to be literally unaffected by the interest rates between the Bank of Japan and the Federal Reserve. The risk manifestation has driven the price action for the Japanese Yen and US Dollar with risk sentiment favoring the Yen. The relationship between these two currencies disappeared in February once the USD/JPY rallied in spite of a large sell off in equity markets all across the world.

The Credit Suisse made some expectations about the Japanese Yen over the next year. The one good thing about all of this is that the Bank of Japan has always kept rates near zero. The Fed funds rate is expected to rise by 41 bps. Therefore, the Japanese Yen could resume its position as one of the funding currencies which may also add to the Yen's weakness going forward.