The yen seems to be temporarily caught the torch among the big three currencies against the euro and the related debt problems and the dollar after the QE2. Over the past 24 hours the pair EUR / JPY has fallen by another 1.5%, down 4% in just the last three days. USD / JPY pair has returned to a level below 81. Not good news for Tokyo, which is likely to cause "fidget nervously in his chair" come from Toyota last week, whose leadership has announced that it expects a sharp decline of profit in the second half, and considering the possibility of collecting more cars abroad. Last month, the president of Toyota, Toyoda, said that the strength of the yen was a major problem for production. Japanese manufacturers are also suffering because of the rise of the yen against the Korean won, which is the main competitor to Japan in many sectors. The intervention of the Bank of Japan is unlikely to happen before the meeting G20, however, if the USD / JPY pair will overcome the level of 80 for the weekend, but on the G20 meeting in Seoul will not be progress on currencies, then we can expect a new "game-muscle" of the Bank of Japan in the near future time.
Translate this page
